KARACHI: Gold prices fell sharply in both global and local markets on Friday, with the price of one tola of gold dropping by Rs4,300 in Pakistan, according to the All Pakistan Sarafa Association.
Following the decline in international gold prices, the price of one tola of gold fell to Rs436,336 in local markets.
The price of 10 grams of gold also declined by Rs3,687 to Rs374,087.
Silver prices also recorded a decline. The price of one tola of silver fell by Rs56 to Rs6,522, while the price of 10 grams dropped by Rs48 to Rs5,591.
In the international market, gold fell by $43 per ounce to $4,138, putting further pressure on domestic prices.
What factors affect gold prices?
Gold prices are influenced by a range of global and domestic factors, including movements in the US dollar, global economic uncertainty, geopolitical tensions and investor sentiment.
Gold is often viewed as a safe-haven asset during periods of economic and political uncertainty. Increased demand for the precious metal during such periods can push international gold prices higher, while easing uncertainty can reduce safe-haven demand and put downward pressure on prices.
In Pakistan, local gold prices are influenced not only by international bullion rates but also by movements in the rupee-dollar exchange rate. Changes in the exchange rate can therefore affect the price of gold in domestic markets even when international prices remain relatively stable.
