Gold prices in Pakistan continued their steep downward trend on Monday, recording another significant fall at the start of the business week. According to market sources, the precious metal has now lost tens of thousands of rupees in value within just a few days, offering temporary relief to buyers but raising concerns among traders and investors.
Major Drop in Local Gold Prices
According to the All Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of gold per tola dropped by Rs21,500 on Monday. Following this decline, the price of one tola of gold now stands at Rs490,362.
Similarly, the price of 10 grams of gold also recorded a sharp decrease. It fell by Rs18,433, bringing the new rate to Rs420,406. These figures reflect one of the most notable short-term declines in Pakistan’s gold market in recent months.
Importantly, market data shows that gold prices have fallen dramatically over the past three days. During this brief period, the per tola price has declined by a total of Rs82,500, highlighting the intensity of the current correction.
Global Market Pressure Behind the Decline
Meanwhile, the domestic slump closely mirrors developments in the international bullion market. On Monday, the global price of gold fell by $215 per ounce, settling at $4,676 per ounce.
International gold prices are often influenced by multiple factors. These include interest rate expectations, movements in the US dollar, inflation trends, and investor sentiment toward safe-haven assets. When global prices decline sharply, local markets such as Pakistan typically follow suit.
Traders note that recent volatility in global financial markets has reduced demand for gold as a protective investment. As a result, prices have adjusted downward after reaching record highs earlier.
What This Means for Consumers and Traders
For consumers, especially those planning weddings or long-term purchases, the current decline offers a rare opportunity. Gold is traditionally seen as both a cultural asset and a financial safeguard in Pakistan. Lower prices may encourage increased buying in the short term.
However, jewellers and investors are approaching the situation with caution. Many traders report uncertainty about whether prices will stabilize or continue to fall. Sudden fluctuations make it difficult to plan inventory and pricing strategies.
At the same time, investors who purchased gold at higher rates may face temporary losses. Experts often advise such investors to take a long-term view, as gold prices tend to recover over time.
Broader Economic Context
Pakistan’s gold market is also affected by domestic economic conditions. Currency fluctuations, inflation, and import-related costs play a role in determining local prices. Although the Pakistani rupee has experienced periods of instability, global price movements remain the dominant factor in recent declines.
Historically, gold has served as a hedge against inflation in Pakistan. However, short-term corrections like the current one are not unusual after rapid price increases.
Outlook Remains Uncertain
Looking ahead, analysts suggest that gold prices may remain volatile in the near term. Much will depend on global economic signals, central bank policies, and investor behavior in international markets.
For now, the sharp decline has reshaped market sentiment across Pakistan. Whether this trend continues or reverses will become clearer in the coming days.
As always, buyers and investors are advised to monitor market developments closely before making major decisions.
