Gold Prices in Pakistan Drop to Earlier Levels
Gold prices in Pakistan witnessed a sharp decline on Tuesday, reversing recent gains and moving closer to earlier price levels as the end of 2025 approaches. The fall came in response to a significant drop in international gold prices, triggering a strong downward correction in the local bullion market.
According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of gold per tola fell by Rs 10,700 in a single day, bringing the new rate down to Rs 459,462 per tola. The sudden drop marks one of the largest single-day declines in local gold prices in recent months.
Market participants noted that the decline reflects both global market pressure and profit-taking by investors who had benefited from the earlier surge in precious metal prices.
10 Grams Gold Prices Also Declines Significantly
Alongside the drop in per tola rates, the price of 10 grams of gold also recorded a notable fall. The APGJSA reported a decrease of Rs 9,174, with the new price settling at Rs 393,914 per 10 grams.
Jewellers across major cities including Karachi, Lahore, and Islamabad reported lower trading activity, as buyers remained cautious amid rapidly changing prices. Many consumers are now adopting a wait-and-see approach, expecting further adjustments before making purchases.
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Consecutive Declines Signal Market Correction
Tuesday’s sharp fall followed another major decline on Monday, when gold prices per tola had already dropped by Rs 5,500, settling at Rs 470,162. Over just two trading sessions, gold has lost more than Rs 16,000 per tola, signaling a strong market correction.
Analysts believe the recent downturn reflects a cooling phase after gold reached record highs earlier in the year. With the end of 2025 approaching, investors are reassessing their positions, particularly in response to shifting global economic indicators.
International Gold Prices Fall Steeply
The local market correction closely followed a sharp decline in international gold prices. In the global bullion market, gold fell by $107 per ounce, bringing the price down to $4,371 per ounce, including a $20 premium.
International analysts attribute the decline to multiple factors, including:
- Strengthening of the US dollar
- Changing expectations around global interest rates
- Reduced safe-haven demand
- Profit-taking after prolonged price rallies
As global prices softened, the impact quickly transmitted to domestic markets, resulting in steep price adjustments in Pakistan.
Silver Prices Also Record a Decline
Silver prices mirrored gold’s downward trend. In the local market, the price of silver per tola decreased by Rs 145, settling at Rs 7,930.
Silver traders noted that while demand for silver remains relatively stable compared to gold, international price movements continue to influence local rates. Industrial demand trends and global commodity market shifts are also playing a role in silver price fluctuations.
Gold Prices : Investor Sentiment Shifts as 2025 Ends
The sharp fall in gold prices comes at a time when investor sentiment is shifting. Throughout much of 2025, gold served as a preferred hedge against inflation, currency volatility, and geopolitical uncertainty.
However, with improving macroeconomic indicators in several regions and expectations of policy stability, some investors are now diversifying away from gold, contributing to price pressure.
Market experts suggest that short-term volatility may continue, particularly as global markets react to economic data releases and central bank signals in the final weeks of the year.
Impact on Local Jewellery Market
Jewellers say the decline could stimulate demand if prices stabilize at lower levels. Traditionally, falling gold prices encourage buying, especially for weddings and investment purposes.
However, the speed of the recent decline has made buyers cautious. Many consumers prefer to wait until prices settle before making significant purchases, especially amid uncertainty over whether further declines are likely.
Retailers also noted that inventory adjustments may take time, as existing stock was purchased at higher prices.
Historical Context: Gold Price Trends in Pakistan
Gold prices in Pakistan have shown significant volatility over the past decade, influenced by currency depreciation, inflation, and global market movements.
Historically, gold has remained a trusted store of value for Pakistani households, particularly during periods of economic uncertainty. Major price corrections often follow periods of rapid increases, as seen in previous years.
The recent decline resembles past end-of-year corrections, when investors rebalance portfolios and respond to changing international trends. Analysts emphasize that such movements are part of normal market cycles rather than a long-term reversal.
Market Outlook for Gold Prices
While short-term pressure remains, experts caution against assuming a sustained downward trend. Gold prices are highly sensitive to global developments, including:
- Interest rate decisions
- Inflation trends
- Currency movements
- Geopolitical risks
If global uncertainty rises again, gold could regain momentum. For now, analysts expect price consolidation as markets seek a new equilibrium.
Official Source
For official bullion rates and updates:
https://www.apgjsa.com
Frequently Asked Questions (FAQs)
Why did gold prices fall sharply in Pakistan?
The decline followed a significant drop in international gold prices and investor profit-taking.
How much did gold per tola fall?
Gold per tola dropped by Rs 10,700 in one day.
What is the current price of gold per tola?
The new rate is Rs 459,462 per tola.
Did silver prices also fall?
Yes, silver prices declined by Rs 145 per tola.
Will gold prices continue to fall?
Analysts expect short-term volatility, with prices likely to stabilize depending on global market trends.
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