Gold prices crash amid massive decline of over Rs7,000 per tola

After experiencing minor dips over the past few days, gold prices recorded a significant decline on Wednesday, with the rate per tola dropping by Rs7,538, bringing the price of 24-karat gold to Rs437,362 per tola, according to figures released by the All Pakistan Gems and Jewellers Sarafa Association (APGJSA).

The rate for 10 grams of 24-karat gold now stands at Rs374,967, reflecting a decrease of Rs6,463. On the global market, however, gold prices saw a modest rise of 0.6%, reaching $4,146.47 per ounce.

Gold rates remained volatile in the month of October, with rates starting at Rs410,278 per tola and climbing to a record high of Rs456,900 on October 16.

However, prices began to tumble after that peak and have now Rs437,362 per tola.

The recent decline is attributed to several economic factors, including weakened local demand due to persistently high prices. As gold rates surged to record levels, consumer buying slowed, resulting in the current downward trend.

Meanwhile, US gold futures for December delivery rose by 1.3% to $4,160.40, reflecting global market resilience.

Experts also link the price movement to a slight dip in the US dollar’s value, which benefited investors holding other currencies.

The dollar index fell by 0.1%, as traders awaited key US inflation data, which is a crucial indicator for assessing the Federal Reserve’s future interest rate policy.