KARACHI: Gold prices in Pakistan posted a sharp decline on Wednesday, mirroring losses in global bullion markets as international gold prices retreated.
The price of 24-karat gold dropped by Rs 4,700 per tola, bringing the new price to Rs430,236 per tola, according to local market rates.
The price of 10 grams of gold fell by Rs 4,029 to Rs 368,858.
In the international market, gold declined by $47 per ounce, with the precious metal trading at $4,078 per ounce.
Meanwhile, silver prices declined in both international and domestic markets, following a drop in global bullion prices.
In the international market, silver fell $1.38 per ounce to $59.42 per ounce.
Reflecting the global decline, the price of one tola of silver in Pakistan dropped by Rs.138 to Rs.6,421, while the price of 10 grams of silver fell by Rs.119 to Rs. 5,504.
Gold has traditionally been regarded as a safe-haven investment because its value tends to rise during periods of inflation, political uncertainty and economic instability.
For centuries, gold has served as a store of wealth and a form of currency. When investors lose confidence in other asset classes, they often turn to gold as a relatively stable investment to preserve their wealth.
More read, Gold, silver prices fall sharply in Pakistan
In Pakistan, the mechanism for setting domestic gold prices was revised last year. Under the updated formula, local gold prices are calculated based on the international market rate plus a premium of $20 per ounce, reflecting domestic pricing adjustments.
