KARACHI: Gold prices in Pakistan declined sharply on Monday, tracking losses in the international bullion market and dampening sentiment among investors and buyers who had witnessed a strong upward trend in recent sessions.
According to rates released by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of gold per tola fell by Rs5,500 during the day, settling at Rs470,162 in the local market. The drop comes after gold had touched record-high levels over the weekend, reflecting the volatility currently dominating precious metal markets.
Similarly, the price of 10-gram gold declined by Rs4,715 to reach Rs403,088. Jewellers said the downward correction was expected after the sharp gains recorded in recent days, as investors responded to changing global cues and profit-taking pressures.
On Saturday, gold prices had surged significantly, with the per tola rate rising by Rs2,300 to reach Rs475,662. The rapid rise over the past week had pushed gold to historically high levels in Pakistan, largely driven by international market movements, a weaker local currency, and strong investor demand for safe-haven assets.
In the global market, gold prices also faced a notable decline. The international rate of gold dropped by $55 to settle at $4,478 per ounce, including a premium of $20. Analysts attribute the fall to a mix of factors, including movements in the US dollar, expectations around global interest rate policies, and shifting investor sentiment toward riskier assets.
Market observers note that international gold prices have remained highly sensitive to economic data releases, geopolitical developments, and signals from major central banks. Even small changes in expectations regarding inflation or interest rates can lead to sharp fluctuations in bullion prices, which are quickly reflected in Pakistan’s local market.
Meanwhile, silver prices also witnessed a decline on Monday. The price of silver per tola dropped by Rs332 to stand at Rs8,075. Traders said silver often follows gold’s direction, although its price movements can be more volatile due to lower liquidity and industrial demand factors.
Jewellers across major cities, including Karachi, Lahore, and Islamabad, reported subdued buying activity following the price drop. Many consumers adopted a wait-and-see approach, anticipating further adjustments in rates. However, some buyers viewed the decline as an opportunity to make purchases ahead of the upcoming wedding season, when demand traditionally rises.
Experts advise investors to closely monitor international trends before making buying or selling decisions, as gold prices are likely to remain volatile in the near term. With global economic uncertainty still present, gold continues to play a key role as a hedge against inflation and currency fluctuations, despite short-term price corrections.
As markets remain reactive to global developments, further ups and downs in precious metal prices are expected in the days ahead.
