Business Desk 
Jul 19, 2024
Gold price in Pakistan declined from an all-time high recorded yesterday in what analysts termed as “correction”.
Data released by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA) showed the price of gold plunged by Rs3,000 per tola and Rs2,572 per 10 grams to settle at Rs251,000 and Rs215,192.
A day earlier, the gold price touched an all-time high of Rs254,000 per tola in the local market as international investors opted for heavy positions in anticipation of the US central bank cutting interest rates in September 2024.
The association reported that the price of gold has been “under cost” by Rs1,600 per tola in Pakistan, as compared to prices in Dubai. This means that, at present, the Pakistani gold market is less expensive than the world market.
Silver prices in Pakistan declined by Rs55 per tola and Rs50 per 10 grams to settle at Rs2,850 per tola and Rs2,443.41 per 10 grams, respectively.
In the international market, the gold prices fell on Friday, but were on track for a fourth straight weekly gain as expectations that the Federal Reserve will cut interest rates in September lifted bullion's appeal.
Spot gold was down 0.8% to $2,425.48 per ounce by 0511 GMT. It has risen 0.6% so far this week, and hit an all-time high of $2,483.60 on Wednesday.
Gold is currently seeing some profit-taking, but things look positive in the medium-term amid political uncertainty and as rate cuts approach, said Kelvin Wong, OANDA's senior market analyst for Asia Pacific.
How is gold price determined in Pakistan?
Gold price in Pakistan is announced by the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), which determines gold prices in Pakistan for local markets six days a week from Monday to Saturday.
Pakistan is a small market for gold at the global level. It meets the commodity’s demand through imports as it does not produce the precious metal locally.
Accordingly, the gold rate in Pakistan is determined by keeping in view its prices in world markets, rupee-dollar exchange rate, and demand and supply in domestic markets. The latest price for local markets was determined to keep in view the prices at which trade took place among buyers and sellers.
