Gold prices extended their downward trajectory on Friday, reflecting a mix of technical adjustments and investor profit-taking in both global and domestic markets.
In the international bullion market, gold prices slipped by $15 per ounce, settling at $3,260. Market analysts point to a combination of routine corrections and short-term trading strategies as key drivers behind the decline, following a period of elevated prices.
In Pakistan, the local gold market mirrored this trend. The price of 24-karat gold per tola decreased by Rs1,200, reaching Rs344,800, while 10 grams of 24-karat gold saw a reduction of Rs1,030, now priced at Rs295,600.
Silver prices, however, held firm, with no changes recorded. The per tola price of silver remained at Rs3,425, and 10 grams of silver stayed steady at Rs2,936.
Industry observers anticipate continued fluctuations in gold prices in the near term, driven by global economic uncertainties and shifting investor confidence.
A Volatile Six-Month Journey
Despite the recent pullback, gold has experienced a remarkable six-month surge, marked by significant price volatility and heightened geopolitical tensions.
According to Sarah Malik, a commodities analyst at Horizon Trading, gold prices began November at approximately $2,780, briefly dipped to $2,520, and then soared to a record-breaking $3,510. This milestone had been long-awaited by market participants.
In Pakistan, gold prices followed a similar arc, rising from Rs294,500 to a peak of Rs351,000 per tola before moderating to around Rs345,000. Local prices remain closely tied to international trends.
This nearly $1,000 swing in global prices highlights both market nervousness and opportunistic buying amid global instability. Gold’s status as a safe-haven asset has fueled demand during periods of unrest.
Escalating conflicts, including ongoing tensions in Eastern Europe, the Middle East, and diplomatic frictions involving major global powers, have driven cautious investors toward gold. Between January and April 2024, the metal recorded robust gains, climbing by an estimated $650.
Political developments in the United States, including debates over trade policies and leadership transitions, have further amplified market uncertainty, reinforcing gold’s allure as a stable store of value.
Looking Ahead
As global markets navigate an uncertain landscape, gold’s role as a hedge against instability is likely to keep it in the spotlight. While short-term volatility may persist, the metal’s long-term appeal remains strong for investors seeking security in turbulent times.
