Gold prices in Pakistan have recorded a steep fall, dropping by more than Rs 10,000 per tola in a single day. The sudden decline reflects a sharp correction in international markets and has drawn strong attention from investors, jewellers, and ordinary consumers alike.
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According to the All Pakistan Gems and Jewellers Sarafa Association (APGJSA), this is one of the most significant single-day drops seen in recent weeks. The fall comes after gold prices had reached record highs, driven by global economic uncertainty and currency pressures.
Major Decline in Local Gold Rates
The All Pakistan Gems and Jewellers Sarafa Association confirmed that the price of one tola of gold fell by Rs 10,700. After this reduction, the new price stands at Rs 459,462 per tola across local markets.
Similarly, the price of 10 grams of gold also declined sharply. It fell by Rs 9,174, bringing the new rate to Rs 393,914 per 10 grams.
Jewellers say the drop has created a sense of relief among buyers. Many consumers had delayed purchases due to rising prices. As a result, footfall in gold markets is expected to increase in the coming days.
However, traders caution that volatility remains high. Prices could shift again depending on global trends.
International Gold Market Sees Sharp Correction
The decline in local prices closely follows a major drop in the international gold market. According to market data, gold prices fell by $107 per ounce globally. After this decrease, gold is now trading at $4,371 per ounce.
International analysts attribute the fall to profit-taking by investors. Many had invested heavily during recent price surges. Additionally, expectations around interest rate policies in major economies have played a role.
Gold prices often move inversely to interest rates. When rates rise, gold becomes less attractive. Recent signals from global financial institutions have influenced market sentiment.
Impact on Pakistani Consumers and Investors
In Pakistan, gold is more than a commodity. It is a traditional store of value and a popular investment choice. Many households also purchase gold for weddings and cultural events.
Over the past year, gold prices in Pakistan surged repeatedly. Factors included rupee depreciation, inflation, and global instability. These increases placed gold beyond the reach of many middle-income buyers.
The latest drop may provide short-term relief. Buyers who were waiting for a correction may now return to the market. Jewellers expect increased activity, especially in urban centers like Karachi, Lahore, and Islamabad.
However, investors remain cautious. Many remember how quickly prices rose in recent months. As a result, long-term buying decisions are still being made carefully.
Why Gold Prices Remain Volatile
Gold prices are influenced by several factors. These include global inflation trends, currency movements, geopolitical tensions, and central bank policies.
In Pakistan, the value of the rupee plays a critical role. When the rupee weakens against the dollar, gold becomes more expensive locally. Conversely, a stable or stronger rupee can ease pressure on prices.
Experts say global uncertainty continues to support gold in the long run. Despite short-term drops, demand remains strong worldwide.
Therefore, while the current decline is significant, it may not signal a lasting downward trend.
What Comes Next for the Gold Market?
Market watchers advise consumers to stay informed. Short-term fluctuations are likely to continue. Buyers should monitor both international prices and local currency movements.
Jewellers also recommend cautious purchasing. While prices have fallen, sudden rebounds remain possible.
For now, the sharp drop has brought temporary relief. Whether it leads to sustained stability will depend on global economic developments in the coming weeks.
As always, gold remains a key barometer of economic confidence—both in Pakistan and around the world.
