Pakistan recorded a sharp decline in gold prices as the rate per tola dropped by 5,200 PKR.
According to the All Pakistan Sarafa Gems and Jewellers Association, 24-karat gold settled at 419,636 PKR per tola following this reduction.
Similarly, the price of 10 grams of gold decreased by 4,458 PKR, bringing it down to 359,770 PKR.
The domestic slump mirrors a downward trend in the international market, where gold shed 52 USD to stand at 3,972 USD per ounce.
In tandem with gold, silver prices in the local market also experienced a dip, falling by 107 PKR to settle at 6,242 PKR per tola.
The Ongoing Decline in Gold Prices
The latest drop in Pakistani gold prices reflects a broader, multi-week corrective trend driven by a combination of shifting international market dynamics and localized economic factors.
Following a prolonged period where gold hit record highs as a preferred safe-haven asset, the precious metal has faced steady downward pressure globally over the past few weeks.
A primary catalyst for this decline is the stabilizing global macroeconomic outlook.
As central banks worldwide signal a more controlled approach to inflation and adjust interest rates, investor appetite has gradually shifted away from non-yielding assets like gold and toward stronger currencies and bonds.
This international cool-off directly impacts Pakistan’s domestic market, which prices gold based on global benchmarks and the prevailing US Dollar exchange rate.
Locally, the market has seen a correction after months of speculative buying.
In previous months, severe domestic inflation and currency fluctuations drove citizens to heavily invest in gold bullion to protect their savings.
However, a recent relative stabilization of the Pakistani Rupee against the greenback, coupled with stricter regulatory oversights on informal gold trading, has curbed panic buying.
With reduced domestic demand and a steadying currency, the local bullion market has been forced to align closely with the declining global rates, offering a temporary reprieve to consumers and jewelers who had been priced out during the peak market rally.
