Following a sharp decline in the international market, local bullion prices in the local market continued their downward trend on Wednesday. This drop was recorded despite sluggish consumer demand.

On Wednesday, the price of 10 grams of gold saw a substantial drop of PKR 6,463, setting the new price at PKR 374,967. Similarly, the price of one tola of gold fell by PKR 7,538 to PKR 437,362.

​According to the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the international market price of one ounce of gold decreased by $85 to $4,150.

 Since last Friday, international prices have collectively fallen by $208 per ounce, resulting in a total drop of PKR 19,538 in the local price of one tola of gold.

The market expert, told the news agency that despite the price cuts, consumer demand has not increased. He noted that even with the ongoing wedding season, buyers are not flocking to the market in large numbers.

​According to the expert, demand began to decrease when the price of gold exceeded PKR 400,000 per tola. “Even with this recent decline, many people still can’t afford to buy gold,” he said. He further mentioned that a one-tola jewellery set is now available for approximately PKR 450,000, which is out of reach for the average consumer.

​According to Reuters, global gold prices fell to a nearly two-week low on Wednesday as investors booked profits ahead of crucial US inflation data expected this week. On Tuesday, prices recorded their largest one-day drop in five years, after hitting a record high of $4,381.21 per ounce.

​Gold prices have surged by 54% this year, largely driven by geopolitical tensions, economic uncertainty, expectations of US interest rate cuts, and strong investment in Exchange Traded Funds (ETFs).

The market expert, pointed out that consistently high gold prices and weak jewellery demand have severely affected manufacturing units. He stated that about 60% of units are struggling to continue operations, while the rest have reduced their workforce due to a decline in orders.

​Regarding investors, the expert said those who previously purchased gold bars and coins are now hesitant to buy more and are adopting a “wait and see” policy. He refused to make any predictions about future prices, stating that they would largely depend on global factors, including political developments.