Gold prices in Pakistan declined on Saturday, reflecting a downward trend in the international bullion market. After witnessing a sharp rise a day earlier, the local gold market experienced a noticeable correction, bringing some relief to buyers but raising concerns among investors who closely track precious metals for stability and returns.
According to data released by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of gold per tola dropped by Rs2,000, settling at Rs452,262. Similarly, the price of 10 grams of gold decreased by Rs1,715, bringing it down to Rs387,741. This decline came just one day after gold prices had surged significantly in the domestic market.
Sudden Reversal After Record Surge
On Friday, gold prices in Pakistan had reached an all-time high when the per tola rate jumped by a massive Rs10,700 to touch Rs454,262. The sharp increase was largely driven by uncertainty in global financial markets, a weaker rupee, and rising international gold prices. However, the momentum proved short-lived as prices retreated the very next day.
Market analysts believe that such rapid fluctuations highlight the volatile nature of the gold market, where prices often react quickly to global economic signals, investor sentiment, and currency movements. The recent decline suggests that traders opted to book profits after the steep rise witnessed earlier.
Impact of International Gold Market
The local decline closely followed losses in the global gold market. Internationally, gold prices fell by $20 per ounce, bringing the rate down to $4,299 per ounce, including a premium of $20. This dip in the global market played a direct role in pulling down gold prices in Pakistan, as domestic rates are heavily influenced by international benchmarks.
Experts note that international gold prices are currently being shaped by a mix of factors, including expectations around global interest rates, movements in the US dollar, and ongoing geopolitical uncertainties. Even small shifts in these elements can lead to noticeable price changes in local markets like Pakistan.
Silver Prices Also Slide
Alongside gold, silver prices also recorded a decline in the domestic market. The price of silver per tola dropped by Rs220, settling at Rs6,464. Silver often mirrors gold’s direction, although its price movements can sometimes be more volatile due to lower trading volumes and industrial demand factors.
The decline in silver prices further confirms the overall soft sentiment in the precious metals market, at least in the short term.
What This Means for Buyers and Investors
For consumers planning to buy gold jewelry for weddings or other occasions, the decrease in gold prices in Pakistan may offer a brief opportunity to make purchases at slightly lower rates. However, jewellers caution that prices remain historically high, and sudden changes can occur at any time.
For investors, the recent fluctuation serves as a reminder that while gold is considered a safe-haven asset, it is not immune to short-term volatility. Many financial advisors recommend a long-term approach to gold investment rather than reacting to daily price movements.
Currency and Local Market Factors
Apart from international prices, the value of the Pakistani rupee also plays a crucial role in determining gold prices in Pakistan. Any depreciation of the rupee against the US dollar can push local gold prices higher, even if international rates remain stable. Conversely, a relatively stable exchange rate can help limit sharp increases.
Additionally, local demand, import costs, and market speculation contribute to daily price changes. With economic uncertainty persisting, gold continues to attract attention as a store of value, keeping demand relatively strong despite price fluctuations.
Outlook for the Coming Days
Market watchers suggest that gold prices may continue to experience ups and downs in the coming days as investors respond to global economic data and policy signals from major economies. While the recent decline offers temporary relief, the broader trend for gold prices in Pakistan remains sensitive to international developments.
In the long run, gold is still expected to hold its importance in Pakistan’s financial landscape, both as an investment and a cultural asset. Buyers and investors alike are advised to stay informed, monitor global trends, and make decisions based on their financial goals rather than short-term market noise.
As the market adjusts after recent highs, all eyes will remain on international gold movements to determine the next direction for local prices.
