On Monday, gold prices experienced a notable decline in both international and domestic markets, driven by technical corrections and widespread profit-taking among investors. The downturn marked a pause in the recent bullish trend for the precious metal, catching the attention of traders and market observers alike.
In Pakistan’s local market, the price of 24-carat gold dropped significantly by Rs1,500 per tola, settling at Rs348,200. For those trading in smaller quantities, the price of 10 grams of gold fell by Rs1,290, reaching Rs298,450. This downward movement mirrored trends in the global bullion market, where gold prices slid by $15 per ounce, bringing the international rate to $3,295.
Analysts attribute the price correction to a combination of factors. After a period of sustained increases, many investors opted to lock in gains, leading to heightened selling pressure. Additionally, technical indicators suggested that gold was due for a short-term pullback, prompting cautious trading. Despite the decline, experts emphasize that gold continues to serve as a reliable safe-haven asset amid ongoing global economic uncertainties, including geopolitical tensions and inflationary concerns.
Silver, in contrast, showed resilience, with prices holding steady. In the local market, per tola silver remained unchanged at Rs3,510, while 10 grams of silver stayed firm at Rs3,010. This stability in silver prices provided a counterpoint to the volatility seen in gold, offering investors a degree of reassurance in the precious metals market.
Looking ahead, market watchers anticipate continued fluctuations in gold prices as investors navigate profit-taking opportunities and respond to global economic developments. While short-term dips are expected, the long-term outlook for gold remains positive, supported by its enduring appeal as a hedge against uncertainty. Traders are advised to monitor key economic indicators and international market trends closely to make informed decisions.
As the precious metals market adjusts to these dynamics, investors remain vigilant, balancing the potential for short-term volatility with the strategic value of holding gold and silver in their portfolios. The current correction, while significant, is viewed as a natural part of the market cycle, with gold poised to retain its luster in the face of global challenges.
