After two consecutive days of sharp gains, the Pakistan gold price drop has surprised investors and buyers as rates declined significantly in the local bullion market on Thursday. The sudden correction brought relief to consumers who had been holding back purchases due to record-high prices earlier this week.
According to the All Pakistan Sarafa Gems and Jewellers Dealers Association, the price of gold per tola fell by Rs35,500 in a single day. Following this drop, the rate of 24-karat gold settled at Rs537,362 per tola in domestic markets, including Karachi, Lahore, and Islamabad.
Similarly, the price of 10 grams of 24-karat gold declined by Rs30,345, bringing it down to Rs460,701. Traders said the correction came after aggressive buying and speculative pressure pushed prices to unusually high levels over the past few sessions.
Local bullion market reacts to sudden fall
Market dealers noted that the decline eased pressure on jewellers, many of whom were facing reduced sales due to extreme volatility. Consumers had largely stayed away from the market during the recent surge, waiting for stability before making purchases for weddings and savings purposes.
Silver prices also moved lower alongside gold. The price of silver per tola dropped by Rs1,106 to Rs11,069, reflecting a broader correction across precious metals in the local market. Jewellers said silver demand remained modest, with most buyers focused on monitoring gold price movements.
Analysts believe that short-term profit-taking and adjustments in local premiums contributed to the sharp fall. The rupee-dollar exchange rate and import costs also play a key role in determining daily gold prices in Pakistan.
Global gold trends influence domestic prices
In the international market, gold was recorded at $5,150 per ounce. Global price movements continue to have a direct impact on Pakistan’s bullion rates, as the local market closely follows international trends along with currency fluctuations.
Experts say ongoing uncertainty in global financial markets, interest rate expectations, and geopolitical developments are keeping gold prices highly volatile worldwide. While gold remains a preferred safe-haven asset, sudden corrections like the latest Pakistan gold price drop highlight the risks of short-term trading.
For now, market participants are advised to stay cautious, as prices may continue to fluctuate in response to global signals and local economic factors. Buyers are expected to return gradually if rates stabilize in the coming days, traders added.