Gold Prices Drop by Rs2,000 Per Tola in Pakistan

In a welcome development for consumers and investors alike, gold prices in Pakistan recorded a sharp decline of Rs2,000 per tola, reflecting downward pressure in both local and international markets. The updated price for 24-karat gold now stands at Rs234,000 per tola, while 10 grams are priced at Rs200,468, down by Rs1,715. The All Pakistan Sarafa Gems and Jewellers Association (APSGJA) confirmed the decline on Monday, citing lower international gold rates and minor appreciation in the Pakistani rupee as the key factors behind the price adjustment. Globally, gold prices have shown signs of correction due to stronger-than-expected U.S. economic indicators. These indicators have temporarily strengthened the dollar and reduced the appeal of gold as a safe-haven asset. The international gold price per ounce also saw a dip, contributing directly to the local pricing structure. In Pakistan, fluctuations in gold rates are heavily influenced by global bullion trends, the rupee-dollar parity, and domestic market demand. Recent economic stability, albeit fragile, has helped ease inflationary pressure, indirectly affecting gold’s market behavior. Jewelers across major cities including Karachi, Lahore, and Islamabad reported increased customer footfall as the price drop came at a crucial time, especially with the upcoming wedding season, which traditionally boosts gold jewelry purchases. 

Industry experts, however, advise caution, stating that the gold market is inherently volatile and influenced by a combination of international financial developments, central bank policies, and geopolitical tensions. “While this decline provides an opportunity for buyers, we may see another surge if the dollar strengthens again or if inflation concerns return,” said a senior gold trader in Karachi. Investors are also watching closely, with many seeing this as a short-term opportunity to enter the market. In uncertain economic climates, gold remains a trusted store of value, making it a focal point of household and institutional investment. The APSGJA continues to update gold rates daily, based on market movements and foreign exchange fluctuations. Consumers are advised to monitor official rates and verify authenticity when making purchases, especially during high-demand periods. As the global economy remains unpredictable, experts believe that gold prices may continue to fluctuate, but it remains to be seen whether this recent dip will mark the beginning of a longer-term trend or a short-lived correction.