Gold falls Rs1,800 per tola for second day

Gold prices in Pakistan fell for a second consecutive day on Tuesday, with 24-karat gold losing Rs1,800 per tola to close at Rs455,736, according to the daily rate sheet issued by the All Pakistan Gems and Jewellers Sarafa Association.

The price of 10 grams of gold dropped by Rs1,543 to Rs390,720. Silver also weakened, with one tola falling by Rs62 to Rs7,038, down from Rs7,100 the previous day.

Dealers attributed the local decline to a softer international market. Gold fell by $18 per ounce globally to $4,332. Local pricing adds a premium of $20 per ounce over the international rate, so the world market slide fed directly into domestic prices.

The loss extended Monday's fall, when the per-tola rate dropped by Rs2,700 to close at Rs457,536. Over the first two trading days of the week, gold has become cheaper by Rs4,500. Aaj News reported that during September the per-tola gold rate in Pakistan has ranged between roughly Rs443,647 and Rs459,540, reflecting continued volatility.

Express News carried Tuesday's closing figures as well, describing the fall in global and local gold prices as the second straight daily decline. Both outlets reported the association's rates, which jewellers across Pakistan use as a benchmark for buying and selling.

Gold is widely treated in Pakistan as a safe store of value, with demand often rising during periods of inflation and political or economic uncertainty. The association issues the rates after adjusting for international prices and the local premium.

The larger drop in gold relative to silver mirrors the international market, where bullion gave up $18 an ounce while silver saw a minor adjustment. The local association's figures are generally followed by markets in Karachi, Lahore, Islamabad and other cities. The daily rates are published each business day and are used by jewellers to set retail prices across the country.