Gold Price in Pakistan Rises After Historic Drop

After witnessing a historic plunge just a day earlier, gold prices in Pakistan have rebounded sharply, bringing relief to traders and cautious optimism to the market.
According to data released by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of 24-karat gold per tola surged by Rs 3,500, settling at Rs 419,862. Similarly, 10 grams of 24-karat gold rose by Rs 3,000 to reach Rs 359,963, while 22-karat gold was priced at Rs 329,978.

This rebound follows an unprecedented Rs 14,000 per tola drop in the previous session one of the steepest daily declines in Pakistan’s gold trading history. The correction had briefly pushed the price down to Rs 416,362 per tola on October 28, prompting panic among investors and consumers.

In the international market, gold prices also recovered after recent volatility. Spot gold rose by about US $35, hitting US $3,975 per ounce. Analysts say the increase came as traders adjusted positions amid mixed signals from global inflation data and the U.S. dollar’s temporary strengthening.

Why Prices Are Rising Again

Experts attribute the rebound to market correction and renewed investor demand. After the sharp decline, many buyers saw an opportunity to re-enter, pushing prices upward.
Pakistan’s local gold market, heavily influenced by international trends and rupee-dollar parity, quickly reflected the global uptick.

Economic observers also point out that safe-haven demand for gold remains strong due to geopolitical uncertainty and inflation pressures. With investors still seeking stability, gold continues to serve as a hedge against currency volatility.

Impact on Consumers and Traders

For consumers, especially those planning weddings or long-term investments, the quick rebound has shortened what could have been a window for bargain buying. Jewelers report that customer activity picked up immediately after the price fall but slowed again once rates rebounded.

Retailers who faced losses during the historic drop have welcomed the rebound, saying it restores balance and consumer confidence. Still, they caution that volatility may continue, urging buyers to keep an eye on global movements before making large purchases.

Market Outlook

Analysts expect gold prices to remain range-bound but unpredictable in the short term. Key factors influencing the outlook include:

• Exchange rate volatility: A weaker rupee typically pushes local gold rates higher.

• Global inflation and interest rates: Central bank decisions will shape investor appetite.

• Seasonal demand: The upcoming wedding season in Pakistan traditionally boosts gold consumption.

Financial experts emphasize that gold remains a long-term hedge, not a short-term gamble, advising small investors to diversify rather than chase sudden dips or spikes.

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