Pakistan Gold Prices Plummet Amid Global Market Volatility

Gold prices in Pakistan declined on Tuesday following losses in the international market. The All-Pakistan Gems and Jewellers Sarafa Association reported that 24-karat gold was quoted at Rs465,336 per tola, down by Rs800 from the previous day. Ten-gram gold was sold at Rs398,950, a decline of Rs686.

The metal's price drop in Pakistan is in line with losses in the international market, where gold fell more than 3% on Friday after Federal Reserve Chairman Kevin Warsh's remarks on curbing inflationary pressure. Spot gold was down 2.9% at $4,567.23 an ounce by 1744 GMT, its lowest level since August 20.

A Fidelity analysis values gold at $5,025 an ounce based on its historical relationship with the global M2 money supply. This implies a roughly 9% upside from the current price of around $4,600. Global M2 grew 8.5% year-on-year in August, up from about 7% in June.