Gold Prices Drop Sharply Across Pakistan

Gold price in Pakistan dropped significantly on Thursday, marking a Rs2,000 decline per tola. The dip follows a similar downward trend in the international gold market. As prices retreat from record highs, buyers and investors are closely watching further movements.

Major Decline in Local Market

The All-Pakistan Gems and Jewellers Sarafa Association (APGJSA) reported that gold was selling at Rs353,000 per tola, a drop of Rs2,000 from the previous day. This correction reflects volatility in global bullion markets and its impact on domestic prices.

Similarly, the price of 10 grams of gold also fell. It dropped by Rs1,714 to settle at Rs302,641. This sharp adjustment came just one day after gold saw a minor gain of Rs300, reaching Rs355,000 per tola on Wednesday.

Global Prices Influence Local Market

The international gold rate also saw a notable decrease. On Thursday, global bullion prices stood at $3,303 per ounce. That represents a loss of $20, including a premium of the same amount. This consistent fluctuation in international pricing directly affects local rates, as Pakistan’s gold market relies heavily on global benchmarks.

The drop in global prices likely stems from a combination of rising bond yields, stronger US economic data, and expectations around interest rates. As investors move towards safer or higher-yielding assets, gold often experiences price pressure.

Silver Also Loses Ground

The trend wasn’t limited to gold. Silver prices also fell across local markets. The price per tola of silver declined by Rs63 to settle at Rs3,900. Meanwhile, 10 grams of silver now trade at Rs3,343.41. This mirrors the performance of gold and suggests a broader softening in the precious metals market.

Read: Inflation Outlook Shifts as SBP Holds Rate Steady

Recent Trends in Gold Pricing

Thursday’s decline stands out in a week filled with mixed signals. On Wednesday, gold had slightly rebounded by Rs300 per tola. However, that gain was quickly reversed. The market has become increasingly sensitive to global movements, especially those tied to the US Federal Reserve’s monetary policy decisions.

In recent months, gold prices had reached historic highs, crossing Rs370,000 per tola in mid-June. Those record levels were fueled by economic uncertainty, inflation fears, and global geopolitical tensions. Now, with some signs of easing pressure, the prices are beginning to correct.

What’s Driving the Price Fluctuations

There are several reasons behind the volatility. Internationally, gold prices react to a mix of factors including:

US interest rate outlook
Inflation data
Central bank gold purchases
Currency fluctuations, particularly the dollar

Domestically, other influences come into play such as:

Rupee-dollar exchange rate
Import regulations and duties
Seasonal wedding demand
Investor sentiment

A stronger Pakistani rupee can also drive local gold prices down since gold is priced globally in dollars. When the rupee gains against the dollar, it offsets part of the rise in international gold prices.

Investor Sentiment and Market Outlook

Despite the latest dip, investor interest in gold remains steady. Many still see it as a hedge against inflation and currency instability. However, short-term traders may see opportunities in buying at lower prices in hopes of a future rebound.

Jewellers expect further movement in prices depending on upcoming economic data and market reactions to global interest rate policies. For now, they advise caution and close monitoring.

As Pakistan heads toward the Eid season and the wedding period later in the year, seasonal demand may influence gold prices again. But until then, global cues will likely remain the dominant force shaping the local market.

Monitoring the Trend

With prices currently easing, some buyers may return to the market after months of hesitation. However, with high volatility, both jewellers and investors are watching every move closely. The next few weeks could provide a clearer picture of where gold—and silver—are headed in Pakistan.