The price of gold in Pakistan has taken a dramatic plunge, falling by a total of Rs. 8,200 per tola over the past two days, reflecting deep market shifts driven by international volatility and domestic currency stability. The latest figures from the All Pakistan Sarafa Gems and Jewelers Association indicate that the price of 24-karat gold declined by Rs. 2,300 per tola on Friday, settling at Rs. 356,700, compared to Rs. 359,000 the day before.
This comes just a day after gold rates dropped by Rs. 5,900 per tola on Thursday, indicating a two-day combined loss of Rs. 8,200—a significant decline that has jolted both investors and traders.
Breakdown of Latest Gold Prices
As per the association’s daily bulletin:
- 24-karat gold (per tola): Dropped by Rs. 2,300, now priced at Rs. 356,700
- 24-karat gold (10 grams): Decreased by Rs. 1,972 to Rs. 305,812, down from Rs. 307,784
- 22-karat gold (10 grams): Declined by Rs. 1,808 to Rs. 280,337, from Rs. 282,145
This steep drop has created significant buzz in local markets, especially among small investors and jewellers who are now grappling with a wave of uncertainty.
Global Market Influence
Gold’s descent in the domestic market closely follows a dip in international markets. The price of gold globally has fallen by $23 per ounce, bringing it down to $3,340 from $3,363. The downward trend is largely attributed to a strengthening US dollar and renewed speculation that the US Federal Reserve may hold off on interest rate cuts due to persistent inflationary pressures.
Moreover, investors are slowly rotating capital back into riskier assets such as stocks and tech-sector bonds, reducing demand for traditional safe-haven commodities like gold.
Silver Prices Also Decline
Alongside gold, silver prices also saw a decline:
- Silver per tola: Down by Rs. 34 to Rs. 4,023
- Silver per 10 grams: Dropped by Rs. 39 to Rs. 3,449
- Global silver price: Fell by $0.34, now at $38.74 per ounce, from $39.08
This parallel movement of both precious metals highlights the broader trend in commodity markets amid shifting investor sentiment.
Market Reactions and Expert Insights
Gold dealers across major trading hubs in Pakistan such as Karachi, Lahore, and Islamabad report a noticeable decline in foot traffic and purchase volume, with many customers adopting a wait-and-see approach.
“There’s clear panic buying yesterday, but today people are confused and holding back,” said Haji Muhammad Yaqoob, a veteran jeweller in Lahore’s famed Liberty Market. “No one wants to purchase something today and see the price fall further tomorrow.”
Meanwhile, analysts are warning against short-term speculation. Shahbaz Qureshi, a Karachi-based financial analyst, noted, “Gold’s long-term fundamentals remain strong, especially with geopolitical tensions and uncertain monetary policy worldwide. But volatility in the short term is natural and expected.”
Why Is This Happening?
Several factors are contributing to the gold price slide in Pakistan:
- Stable Pakistani Rupee: With the rupee holding its position against the dollar, the pressure on domestic gold rates is reduced.
- Global Sentiment Shift: A stronger dollar and improving risk appetite among global investors are reducing reliance on gold as a hedge.
- Profit-Taking: Many investors may have decided to cash in on high gold prices, especially after it peaked near Rs. 365,000 per tola earlier this month.
- Technical Correction: After a prolonged rally, the market often corrects itself.
Gold’s Recent Highs and Lows
Earlier in July 2025, gold touched a record high of Rs. 365,500 per tola in Pakistan, driven by inflation concerns and global uncertainty. The current drop of Rs. 8,200 in just two days brings it dangerously close to the Rs. 350,000 mark, with some analysts speculating it could dip further if international trends persist.
READ MORE: Gold Rates in Pakistan
What’s Next for Gold Buyers?
For potential buyers, this could be a golden opportunity to purchase at relatively lower rates if prices stabilize. However, volatility remains high, and the market could go either way based on US economic data and local monetary policy in Pakistan.
Experts advise both buyers and sellers to monitor the market closely and avoid impulsive decisions.
