After All-Time High, Gold Prices See Slight Decline in Pakistan

Gold Prices Drop After Hitting Record Highs

Gold prices in Pakistan witnessed a modest correction on Thursday after surging to an all-time high just the previous day. According to data from the All Pakistan Gems & Jewellers Sarafa Association (APGJSA), the price of 24-karat gold per tola declined by Rs 2,500, settling at Rs 407,778. Simultaneously, the price for 10 grams of 24K gold fell by Rs 2,144, now quoted at Rs 349,603.

This comes after a dramatic surge on Wednesday, when gold prices had risen by Rs 3,500 in a single session to reach a record Rs 410,278 per tola.

The drop reflects broader global shifts: international gold rates also fell by $25 per ounce, with the price recorded at $3,865 (including a $20 premium).

Local and International Trends Align

The domestic decline mirrored trends in the international bullion markets, where safe-haven demand softened amid changing investor sentiment and macroeconomic developments. 

Silver, on the other hand, saw a modest increase. APGJSA data shows the per tola price of silver gained Rs 13, reaching Rs 4,839, while 10 grams rose by Rs 11 to Rs 4,148.

The decline in gold gives a brief respite to buyers, who had been contending with accelerating rates over recent days. However, analysts caution the market remains volatile and responsive to global cues, currency fluctuations, and investor flows.

Key Factors Behind the Decline

Global Price Softening

The international dip in gold — a drop of $25 per ounce — exerted downward pressure on local rates. Since Pakistan imports much of its bullion, global moves tend to quickly ripple into local markets. 

Currency & Premium Adjustments

As gold prices moved downward globally, the Pakistani rupee’s exchange rate and local import premiums also influenced how far the drop translated into domestic rates. Even modest rupee movements can dampen or amplify price impacts locally.

Profit-Taking and Market Corrections

After the recent sharp gains, market participants likely booked profits, triggering a pullback. Corrections are common after dramatic price surges, and gold tends to swing with investor sentiment.

Weakening Safe-Haven Demand

Gold often serves as a hedge in economic or geopolitical uncertainty. A slight easing of fears globally could reduce immediate demand, contributing to the downward adjustment.

What the Market Signals

While the drop is moderate, it signals that the gold market is still in flux. Buyers hoping for a steep fall may be disappointed, but the correction could provide a short window to enter or scale positions more conservatively.

For retail buyers and jewelers, the reduction may relieve cost pressure, particularly for wedding and festival buying. But given the volatility, many are expected to adopt a cautious approach, monitoring daily movements closely.

City-Wise Rates and Market Reactions

In major cities like Karachi, Lahore, and Islamabad, rates followed the national trend, with slight variations depending on premium, supply, and demand dynamics. Local jewellers cited slowness in trading volumes and a wait-and-see attitude among buyers.

Some dealers said gold remained fully tradable, but margins were tighter due to the recent wild swings.

Longer-Term Prospects & Watch Points

Experts suggest the price trajectory will depend on several evolving factors:

• Global macroeconomics: Interest rate decisions, inflation data, and central bank policies will remain key.

• Currency stability: Rupee performance against the dollar continues to influence how much of global movements pass through locally.

• Safe-haven flows: New shocks or geopolitical tensions could reignite demand.

• Local demand drivers: Seasonal demand for jewelry (especially before weddings or holidays) could define short-term support.

Some analysts believe further upward potential remains, especially if inflationary or external pressures intensify, but caution that sharp reversals are plausible.

Conclusion

Gold prices in Pakistan have moderated after reaching unprecedented highs, with the 24K tola rate falling by Rs 2,500 and 10-gram rates seeing a dip of Rs 2,144. The move aligns with global market softness and reflects a volatile commodity environment.

While the decline offers relief to some buyers, the market remains unpredictable. Observers will closely watch global signals, currency dynamics, and domestic demand trends to see whether this marks a temporary pullback or the start of a broader correction phase.

For now, gold continues to command attention — not just for its safe-haven appeal, but as a barometer of investor sentiment, currency strength, and global economic tensions.