ISLAMABAD: Driven by a downward shift in the international market, domestic gold prices in Pakistan experienced a notable decline on Monday.
In the global bullion market, the price of gold fell by $23 per ounce, bringing the new international rate down to $4,065 per ounce.
In line with this global trend, the local sarafa (bullion) markets saw the price of 24-karat gold slide by Rs. 2,300 per tola, closing at Rs. 428,936 on the first business day of the week.
According to local jewelers, the price for 10 grams of 24-karat gold similarly decreased by Rs. 1,972 to settle at Rs. 367,743.
The silver market also recorded a downward correction. The domestic price of per-tola silver dipped by Rs. 69 to stand at Rs. 6,324, while the price of 10 grams of silver dropped by Rs. 59, bringing it to Rs. 5,421.
Historical Gold Price Trends in Pakistan (2021–2026)
The commodity market in Pakistan has witnessed unprecedented volatility over the past five years, with gold transforming from a traditional luxury into a critical macroeconomic hedge.
Between 2021 and 2026, domestic gold prices skyrocketed, essentially quadrupling in value. In early 2021, 24-karat gold was trading at a comparatively modest benchmark of approximately Rs. 100,000 to Rs. 125,000 per tola.
However, a combination of severe domestic economic headwinds and global geopolitical shifts triggered an aggressive, multi-year bull run.
This meteoric rise was primarily driven by two synchronized factors: the rapid depreciation of the Pakistani Rupee (PKR) against the US Dollar and persistently high domestic inflation.
As the local currency weakened, investors and the general public flocked to gold as a safe-haven asset to preserve their purchasing power.
By 2023, the precious metal had breached the Rs. 200,000 per tola milestone, and by late 2025, it comfortably crossed Rs. 350,000 per tola.
On the global stage, international spot gold concurrently surged past historic highs to cross the $4,000 per ounce threshold by mid-2026 due to global inflationary pressures and macroeconomic uncertainties.
Consequently, even minor daily corrections—such as the current drop to Rs. 428,936 per tola—take place against a backdrop of historic valuation highs.
For Pakistani households and institutional investors alike, the last five years have firmly established gold not just as jewelry, but as the premier asset class for wealth preservation, routinely outperforming local equity markets and cash savings.
