Record Gold Price Drop in Karachi
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Karachi experienced a historic single-day decline in gold prices on Friday, with 10-gram 24-karat gold falling by Rs30,435 and one-tola gold (approximately 11.66 grams) dropping by Rs35,500. This brought the prices to Rs460,701 and Rs537,362, respectively.
Details of the Price Decrease
The significant decrease in gold prices represents the largest single-day drop ever recorded in Karachi’s gold market. This significant shift occurred on Friday, though the specific date was not provided in the initial report. The prices reflect the market rates for 24-karat gold, a standard measure of purity.
As of January 31, 2026, there have been no reports of price recovery or further significant drops following this event. The News International reported the initial price drop on November 17,2023.
Factors Influencing Gold Prices
Gold prices are influenced by a complex interplay of global economic factors, including inflation, interest rates, currency fluctuations, and geopolitical events. A strengthening US dollar and positive economic data can often lead to a decrease in gold prices, as investors may shift towards assets offering higher returns. The World Gold Council provides detailed analysis of these factors.
Example: in late 2023, expectations of the Federal Reserve maintaining higher interest rates for a longer period contributed to a decline in gold prices globally, mirroring the trend observed in Karachi.
Karachi Gold Market Overview
Karachi serves as a major trading hub for gold in Pakistan. The city’s gold market is closely monitored by investors and traders across the country. Price fluctuations in Karachi frequently enough reflect broader trends in the international gold market, but local demand and supply dynamics can also play a role. The State Bank of Pakistan regulates the import and trade of gold within the country.
Note: The Karachi Bullion Dealers Association (KBDA) is a key institution involved in setting and disseminating gold prices within the city. Though, a direct link to their official website was unavailable as of the knowledge cut-off date.
