Pakistan’s gold market has witnessed an unprecedented moment. On Thursday, gold prices recorded the largest single-day decline in the country’s history, sending shockwaves through traders, investors, and consumers alike.
The sharp fall comes just days after prices surged to record highs. As a result, volatility has once again highlighted how closely Pakistan’s gold market is tied to global trends and local economic pressures.
Record-Breaking Decline in Local Gold Prices
According to the All Pakistan Gems and Jewellers Association (APGJA), the price of gold per tola dropped by a massive Rs35,500 in one day. Following this historic decrease, the new price of one tola now stands at Rs537,362.
This decline is the largest ever recorded in Pakistan’s bullion market. Traders described the movement as extraordinary, given the traditionally gradual nature of gold price adjustments.
Similarly, the price of 10 grams of gold also saw a steep reduction. The association reported a decrease of Rs30,435, bringing the new price of 10 grams to Rs460,701.
Such sharp corrections are rare in Pakistan’s gold market. Typically, daily price changes remain within a few thousand rupees. Therefore, the scale of this fall has drawn widespread attention.
International Market Sees Sharp Correction
Meanwhile, global gold prices also moved sharply lower. In the international bullion market, the price of gold fell by $355 per ounce. As a result, gold is now trading at $5,150 per ounce.
International gold prices play a critical role in determining local rates in Pakistan. Changes in the global market are reflected domestically after adjusting for currency exchange rates, taxes, and local demand.
Over recent months, global gold prices have remained highly volatile. Investors worldwide have been reacting to inflation trends, interest rate expectations, and movements in the US dollar.
Although the Urdu report does not specify reasons for the drop, analysts often link such corrections to profit-taking after rapid price increases.
Sharp Contrast With Recent Price Surge
What makes this decline even more striking is its timing. Just over the past two days, gold prices had increased by more than Rs42,000 per tola.
That surge had pushed prices to historic highs. Many buyers had stepped back, while investors rushed in to hedge against economic uncertainty.
However, Thursday’s dramatic fall reversed a significant portion of those gains. This sudden shift reflects how quickly sentiment can change in the gold market.
For consumers, the drop may offer temporary relief. For investors, however, it underlines the risks associated with short-term speculation.
Impact on Consumers and Traders
Jewellers across major cities, including Karachi and Lahore, reported mixed reactions. Some buyers returned to the market, hoping to take advantage of lower prices.
At the same time, many traders adopted a cautious stance. They expect continued volatility in the coming days.
Gold is traditionally seen as a safe-haven asset in Pakistan. People often invest in it to protect savings from inflation and currency depreciation. Therefore, sharp price movements tend to affect public sentiment strongly.
Pakistan is among the world’s top consumers of gold, especially for jewellery used in weddings and cultural ceremonies.
What Lies Ahead for Gold Prices
Looking forward, market participants expect prices to remain sensitive to global developments. Any changes in international monetary policy or currency markets could influence gold rates further.
While Thursday’s drop is historic, experts caution against assuming a long-term downward trend. Gold prices have shown resilience in uncertain economic conditions.
For now, both buyers and sellers are watching closely. The coming days will reveal whether this correction stabilises the market or signals further swings ahead.
