Gold price decreases by Rs7,000 per tola in Pakistan

Karachi (Web Desk): According to the Sarafa Bazar Association, the price of gold per tola has dropped by Rs 7,000, now standing at Rs 423,662. Similarly, the price of 10 grams of gold has also decreased by Rs 6,002, bringing it down to Rs 363,221.

It’s worth noting that there were no significant changes in gold prices in the country yesterday.

Experts suggest that the fluctuations in gold prices in Pakistan are closely linked to global market demand, supply, and the value of the Pakistani rupee. Factors such as geopolitical risks, recession concerns, and increased gold purchases by central banks are major contributors to rising gold prices. Additionally, expectations of a reduction in U.S. interest rates are also affecting gold's value.

Morgan Stanley, the global financial institution, has predicted that gold prices could reach new heights in the coming years. According to their report, gold could hit $4,500 per ounce by mid-2026, up from the current price of around $4,000 per ounce.

Morgan Stanley further explains that the strong demand from exchange-traded funds (ETFs) and central banks has been a primary driver of gold’s rising value. The ongoing global economic uncertainty has also prompted investors to turn to gold as a safe investment.

The report also mentioned that gold’s recent surge has pushed it into an "overbought" zone, but the current price drop has helped stabilize and normalize market positioning. Going forward, the anticipated reduction in U.S. interest rates is expected to encourage further investment in gold-backed ETFs and continued gold purchases by central banks.