After a brief two-day break, gold prices have recorded a noticeable decline in both global and local markets. The international bullion rate fell, leading to a direct impact on domestic gold rates in Pakistan. According to the latest updates, the price of gold per ounce in the global market dropped by $10, settling at $4,124, which subsequently triggered a fall in gold prices across local bullion markets.
In Pakistan, the gold prices of 24-karat per tola decreased by Rs 1,000, bringing it down to Rs 434,762 on Wednesday. Similarly, the price of 10 grams of 24-karat gold dropped by Rs 857, now standing at Rs 372,738. This decline comes after consecutive days of market closure and reflects the international market’s movement, where investors reacted to stronger economic indicators and a stable dollar.
Global Trends Influencing Gold Prices
The international bullion market remains the primary driver for gold prices in Pakistan. This week, the global gold rate saw a decline of $10 per ounce, marking a slight but noticeable shift after a period of relative stability. The drop is mainly attributed to the strengthening of the U.S. dollar and rising bond yields, both of which tend to push investors away from non-yielding assets like gold.
Economic analysts also point out that renewed confidence in major economies has reduced the appeal of gold as a safe-haven asset. Investors are turning toward equities and other investment instruments, temporarily dampening demand for gold. However, despite this short-term correction, the long-term outlook for gold remains stable due to ongoing geopolitical uncertainties and inflationary pressures in several regions.
Impact on Pakistan’s Local Bullion Market
The Pakistani gold market closely follows international price movements, and the latest global decline immediately reflected in local rates. On Wednesday, the gold price per tola dropped by Rs 1,000, while the price per 10 grams decreased by Rs 857. Local traders attribute this fall to the decline in international prices and the relatively stable exchange rate of the Pakistani rupee against the U.S. dollar.
After this adjustment, the new gold prices in Pakistan stand as follows:
- 24-karat gold (per tola): Rs 434,762
- 24-karat gold (per 10 grams): Rs 372,738
- 22-karat gold (per 10 grams): Approximately Rs 341,010
The domestic market had remained closed for two days, and the latest trading session brought in moderate buying activity from investors who were waiting for prices to stabilize.
Silver Prices Also Decline
Gold wasn’t the only precious metal affected by the market shift. Silver prices also witnessed a decline both globally and locally. The price of silver per tola decreased by Rs 81, reaching Rs 5,434, while the price per 10 grams dropped by Rs 69 to Rs 4,658. This decline follows the same trend as gold, as silver often moves in correlation with the yellow metal in response to global economic signals.
Reasons Behind the Decline in Gold Prices
Several key factors have contributed to the latest drop in gold prices:
- Stronger U.S. Dollar: A rising dollar makes gold more expensive for investors holding other currencies, reducing global demand.
- Higher Bond Yields: As government bond yields increase, investors often shift away from gold, which doesn’t offer interest or dividends.
- Economic Stability: Optimism about global growth and improved market sentiment has lessened the need for safe-haven assets.
- Short-Term Market Correction: After a sustained rise in recent months, a minor correction was expected in gold’s price pattern.
Despite the current decline, market experts believe that gold prices may recover in the coming weeks, depending on upcoming economic data releases and geopolitical events. Analysts predict that if inflationary pressures persist or global tensions rise, gold could once again attract investors as a reliable store of value.
For Pakistani buyers, the current dip might offer an opportunity to purchase gold at relatively lower prices before the next potential rally. Local jewelers expect moderate demand to continue, especially as the wedding season approaches.
The recent decline in gold prices after a two-day break has drawn attention from investors and traders alike. With international rates dropping by $10 per ounce, Pakistan’s bullion market quickly adjusted, reducing local prices by up to Rs 1,000 per tola. While the short-term outlook shows a downward trend, experts maintain that the long-term fundamentals for gold remain strong.
As global economic dynamics continue to evolve, fluctuations in gold prices will likely persist — but for many, gold remains not just a commodity, but a symbol of security and lasting value.
