KARACHI: The gold price on Thursday dropped by Rs2,500 to Rs90,500 per tola in Pakistan due to de-escalation of regional tensions.
According to data provided by the All Sindh Saraf and Jewellers Association, the 10-gram gold price fell Rs2,141 to Rs77,590. The bullion price dropped $32 to $1,548 per ounce in the international market, the data showed.
Earlier on Monday, the gold price spiked to an all-time high at Rs93,400 per tola following the escalation of regional tensions as the US killed an Iranian military commander in a drone strike. Later, Iran targeted the military bases in Iraq housing US forces which heightened the tensions.
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However, US President Donald Trump in a speech on Wednesday signaled towards de-escalation after which gold prices started falling.
Talking to The Express Tribune, commodities analyst Adnan Agar said the plunge in the price of gold was a reflection of the fall in international prices of bullion.
“Oil prices are also falling in the global market, which earlier rose following the increase in regional tensions,” he said. “Gold is considered a safe haven, hence, investment in the commodity soared when a war-like situation emerged.”