Gold Prices in Pakistan Extend Downward Trend Amid Decline

Gold prices in Pakistan continued their downward slide on Saturday, reflecting weakness in international bullion markets. The consistent fall has raised concerns among investors and jewelers as the local market adjusts to global fluctuations and shifting demand patterns.

Global Market Decline

The international bullion market once again recorded a drop in prices. Gold fell by $9 per ounce, closing at $3,335. Analysts attributed the decline to profit-taking by investors and pressure from a strengthening US dollar. As global economic signals remain mixed, gold—traditionally seen as a safe-haven asset—has struggled to maintain its upward momentum.

Market experts also noted that rising US bond yields and speculation about future interest rate cuts have influenced gold’s performance. Traders are closely monitoring inflation data and central bank policies to gauge the direction of bullion prices in the coming weeks.

Local Market Adjustments

The downward shift in the global market quickly translated into lower rates in Pakistan. In Karachi, Lahore, and other major cities, the price of 24-carat gold per tola fell by Rs900, settling at Rs356,200. Similarly, the price of 10 grams of gold decreased by Rs771 to Rs305,384.

Jewelry traders reported that consumer demand has softened as prices remain volatile. Many buyers are waiting for stability before making large purchases. At the same time, wedding season demand has provided some support, but overall market activity remains slower compared to earlier months.

Read: PSX Soars to All-Time High on US Trade Deal Hopes

Silver Follows the Trend

Silver prices mirrored the decline in gold. The price of per tola silver dropped by Rs41, bringing it down to Rs4,031. Likewise, the price of 10 grams of silver decreased by Rs36 to Rs3,455.

While silver is less volatile than gold, it has also been influenced by fluctuations in the global commodities market. Analysts believe the drop in industrial demand has contributed to its weaker performance.

Impact on Jewelers and Investors

The continued fall in gold prices has had a mixed impact on stakeholders. Jewelers face lower margins as consumers delay purchases, while investors holding gold as a hedge against inflation face paper losses.

However, financial advisors argue that the current decline could provide an entry point for long-term investors. They believe that once global economic uncertainty stabilizes, gold prices could regain strength. Still, short-term volatility remains a challenge for both traders and buyers.

Pakistani Rupee Shows Strength

While gold prices weakened, the Pakistani rupee extended its upward momentum, gaining for the fourth consecutive week against the US dollar. According to data, the local currency appreciated by 0.06% on a day-to-day basis, closing at Rs282.06 against the greenback.

Currency analysts highlighted that improved foreign exchange reserves and steady inflows have supported the rupee’s performance. Despite these short-term gains, the rupee remains under long-term pressure from trade imbalances and debt obligations.

Year-to-Date Performance

On a calendar-year-to-date basis, the rupee has depreciated 1.25% against the dollar. However, in the current fiscal year, the currency has recorded a modest gain of 0.60%. Market participants view this as a sign of cautious stability, though risks from external financing needs remain significant.

Financial institutions such as Ismail Iqbal Securities and AKD Securities acknowledged the rupee’s recent resilience. They noted that consistent central bank interventions and favorable remittance flows have contributed to the positive momentum.

Interplay Between Gold and Currency

The simultaneous fall in gold prices and rise in the rupee highlights the complex dynamics of Pakistan’s financial markets. As the rupee strengthens, the local cost of imported commodities like gold naturally declines. This trend provides temporary relief to consumers but creates challenges for traders reliant on higher prices to maintain margins.

Market observers argue that if the rupee continues its upward streak, gold may remain under pressure in the local market even if international prices stabilize. The balance between currency performance and global bullion rates will likely determine the near-term outlook for both gold and silver in Pakistan.

Outlook for Coming Weeks

Looking ahead, analysts expect gold prices to remain volatile. Global investors will keep a close eye on US economic data, interest rate decisions, and geopolitical developments. Any shift in these factors could either stabilize or further weaken gold’s appeal.

In Pakistan, jewelers anticipate a cautious market in the coming weeks. While some buyers may take advantage of lower prices, others are likely to wait for clearer signals before investing. For now, both traders and consumers remain on edge, watching how global and local markets unfold.