Domestic Gold Prices See Fresh Decline
According to the All Pakistan Gems and Jewellers Association (APGJA), the price of 24-karat gold fell by Rs1,900 per tola, bringing the new rate to Rs441,862.
The association added that the price of 10 grams of gold dropped by Rs1,629, settling at Rs378,825.
This decline comes only 24 hours after gold became more expensive. On Tuesday, the per-tola price had jumped by Rs1,600, reflecting volatility in both domestic and global markets.
Global Prices Also Move Downward
The APGJA reported that gold prices in the international market fell by USD 19, bringing the global rate to USD 4,195 per ounce. A similar trend has been highlighted in recent market coverage, including reports such as Gold Prices Continue to Fall in Pakistan as Global Market Weakens.
Although global gold prices remain near historically high levels—driven by economic uncertainty, geopolitical tensions, and ongoing currency fluctuations—this minor pullback contributed to the downward adjustment in Pakistan.
Gold has been trading above USD 4,000 per ounce in recent months, a record range fueled by strong demand from central banks and investors seeking a safe haven.
Why Are Gold Prices Fluctuating?
Gold prices in Pakistan often reflect movements in the world market, but they are also heavily influenced by local factors. The country’s bullion rates are linked to the international dollar-denominated price, as well as the exchange rate between the Pakistani rupee and the US dollar.
In recent weeks, several trends have shaped the local market:
1. Exchange Rate Instability
The value of the Pakistani rupee has fluctuated due to shifting foreign exchange reserves and macroeconomic pressures. Any depreciation tends to push gold prices higher, as importing bullion becomes more expensive.
2. Global Market Movements
The international gold price has remained volatile. Investors worldwide have shifted funds toward gold amid concerns over inflation, global conflicts, and the possibility of slower economic growth.
3. Local Demand Patterns
Wedding season traditionally boosts gold demand in Pakistan. However, extremely high prices over the past year have pushed many buyers toward lighter jewellery designs or alternative metals.
Recent Price Trends in Pakistan
Pakistan has witnessed a notable increase in gold prices throughout the year. Several times, the price per tola crossed record levels as the rupee weakened and global demand surged.
In the past three months, gold has hovered close to the Rs450,000 per tola mark.
Sudden intraday swings—sometimes over Rs2,000—have become more common due to uncertainty in global markets.
Tuesday’s rise followed by Wednesday’s drop reflects the same pattern of short-lived rallies and fast corrections.
Traders Expect Continued Volatility
Local jewellers say the current fluctuations may continue, especially if global demand remains strong. They point out that domestic bullion prices will likely respond quickly to any shift in the global gold market or currency trends.
Analysts note that as long as economic sentiment remains uncertain, gold will retain its status as a preferred safe-haven asset. This could keep prices elevated even if short-term corrections occur.
Outlook
For now, consumers may find slight relief in the latest price drop. However, industry observers believe gold prices are unlikely to see a major or sustained reduction unless the global market stabilizes or the rupee strengthens.
As Pakistan’s economy navigates inflationary pressures and evolving global market dynamics, gold is expected to remain a closely watched commodity in the months ahead.
