Domestic gold prices witness steepest short-term fall in months, reflecting global market shifts and investor profit-taking
KARACHI: Gold prices in Pakistan experienced a sharp correction over the past two trading sessions, shedding a total of Rs 23,900 per tola, marking one of the steepest short-term declines in recent months.
In domestic trading, gold fell by Rs 10,000 on Friday after dropping Rs 13,900 in the previous session, bringing the price per tola to Rs 539,962. Similarly, 10 grams of gold declined by Rs 8,573, settling at Rs 462,930, mirroring international bullion trends.
Analysts link the slump to a $100 drop in global gold prices, which fell to $5,172 per ounce. Contributing factors include investor profit-taking after recent highs, a stronger U.S. dollar, and a shift in safe-haven demand dynamics.
In contrast, silver prices moved upward domestically, rising by Rs 100 per tola to Rs 9,004, signaling selective demand in the local market.
Meanwhile, energy markets diverged, with reports of potential closure at the Strait of Hormuz pushing international oil prices higher. The chokepoint is vital for global oil transit, and any prolonged disruption could intensify inflationary pressures and complicate central bank policies.
The divergent movements of gold and oil underscore heightened volatility across commodity markets, prompting investors to closely monitor geopolitical developments. Experts warn that bullion and energy prices are likely to remain sensitive to global economic signals in the near term.
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