KARACHI: Global gold prices fell for a second consecutive day on Thursday, hovering near their lowest levels in more than seven months.
Spot gold dropped 0.4% to $3,985.89 per ounce, following a slide on Wednesday that hit its lowest point since November 2025.
Similarly, U.S. gold futures for August delivery slipped 0.2% to trade at $4,001.60 per ounce.
On Wednesday, gold dipped below the key psychological threshold of $4,000 per ounce for the first time since late 2025.
Market experts attribute this downward trend to a strengthening U.S. dollar and the anticipation of higher interest rates, both of which continue to suppress investment demand for the precious metal.
Among other precious metals, silver fell 0.2% to $57.33 per ounce and platinum shed 0.2% to stand at $1,575.85 per ounce, while palladium bucked the trend, gaining 0.3% to reach $1,170.25 per ounce.
Domestically, the All Pakistan Sarafa Association reported that 24-karat gold plunged by Rs. 10,400 per tola on Monday, bringing the price down to Rs. 432,236. Meanwhile, the price of 10 grams of gold fell by Rs. 9,360 to settle at Rs. 368,985.
Local traders expect domestic prices to slide further in line with the weakening international market.
Two Decades of Gold Prices in Pakistan
The trajectory of gold prices in Pakistan over the past twenty years highlights a staggering macroeconomic shift, transforming the precious metal from a traditional wedding commodity into a crucial financial safe haven.
In the mid-2000s, gold was remarkably affordable by modern standards, trading around Rs. 10,000 to Rs. 15,000 per tola.
However, successive waves of global and domestic economic instability triggered an unprecedented, multi-decade bull run.
The first massive catalyst arrived with the 2008 global financial crisis, which pushed international investors toward gold and drove Pakistani rates past Rs. 30,000 per tola.
Over the next decade, a combination of steady inflation and structural economic challenges pushed prices gradually upward.
The true exponential surge, however, occurred post-2020.
The economic fallout of the COVID-19 pandemic, followed by severe domestic currency devaluation, caused local prices to skyrocket.
Because domestic gold pricing is directly tied to both international spot rates and the US Dollar-to-Pakistani Rupee exchange rate, the rapid depreciation of the rupee acted as a massive multiplier.
By the mid-2020s, local prices shattered historic records, crossing the Rs. 200,000 mark and eventually soaring beyond Rs. 400,000 per tola.
Today, while international market corrections cause short-term dips, gold remains the premier hedge for Pakistani citizens looking to protect their wealth against persistent inflation and local currency volatility.
