Gold prices in Pakistan plunged on Tuesday after hitting record highs the previous day as international markets also declined sharply. Such a sharp fall has caught the attention of investors and traders alike, underscoring the continuing impact of global economic developments on local commodity prices.

The All-Pakistan Gems and Jewellers Sarafa Association (APGJSA) said the gold price decreased by Rs10,400 per tola and was at Rs432,236. Similarly, the price of 10 grams of gold decreased by Rs9,360 to Rs368,985. The decline came after gold prices had jumped by Rs4,643 per tola on Monday.

A weak global gold market was the main reason for the fall. Spot gold fell internationally to $4,138.79 an ounce, and US gold futures also posted heavy losses. Analysts said the fall was due to a stronger US dollar, making gold more expensive for foreign buyers and less attractive as a safe haven investment.

Easing geopolitical concerns also impacted market sentiment. Progress in US-Iran negotiations, and the easing of some oil-related sanctions, eased fears of supply disruptions and inflationary pressures, both of which generally support gold prices.

Experts say investors are now looking ahead to US Personal Consumption Expenditures data, a key inflation measure that could influence future Federal Reserve policy decisions. Silver prices also declined in the meantime, reflecting the softness in precious metals markets.

Credit: Independent News Pakistan (INP)