Gold prices in Pakistan experienced a significant drop on Friday, with the local bullion market seeing values fall sharply from recent highs amid broader declines in international gold prices. The price of 24-karat gold per tola fell to Rs537,362 after a Rs35,500 decrease during the day, according to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA). Similarly, the 10-gram rate slipped to Rs460,701 following a Rs30,435 drop.
The sharp decline followed a period of strong gains earlier in the week when gold prices had surged to record levels in Pakistan’s domestic market, breaking the Rs570,000 per tola barrier as bullion rallied. On Thursday, gold had reached around Rs572,862 per tola, but profit-taking and shifts in global market conditions triggered a swift reversal.
Global Market Influences and Price Drivers
Internationally, gold also faced downward pressure. The international rate of gold declined by $355 to about $5,150 per ounce, with spot prices losing nearly 4% as investors reacted to expectations of tighter monetary policy and profit-taking after extended record rallies.
Global markets earlier saw gold hit record highs, with prices exceeding $5,500 an ounce on strong demand as investors sought safe-haven assets amid economic uncertainty and geopolitical tensions. However, late-week selling pressure emerged as participants booked profits and reacted to news, causing prices to ease back.
Analysts have pointed out that gold’s recent volatility reflects a tug-of-war between strong long-term demand and short-term market dynamics. UBS, for example, raised its gold forecasts for 2026, projecting prices could climb toward $6,200 per ounce, even as prices remain volatile in the near term.
Impact on Pakistan’s Local Market
In Pakistan, gold prices remain closely tied to international trends, the strength of the Pakistani rupee, and investor sentiment. When global bullion weakens, local prices typically follow suit, even if the world price remains historically elevated. Domestic jewellers and traders monitor both global spot prices and local demand to set market rates each day.
The recent drop comes after a period of notable price swings in the local market. Just weeks earlier, gold had declined by Rs2,700 per tola in a previous downturn, showing persistent volatility in the sector.
Silver prices also mirrored the downward momentum on Friday, with silver rates falling sharply in tandem with gold due to similar profit-booking and market repositioning by investors.
What This Means for Investors
Although the recent slide marks a notable correction, gold prices remain well above historical averages. Analysts say that price volatility is not unusual after rapid rallies, and investors often see such retreats as part of normal market cycles. With geopolitical tensions and economic uncertainties still present, gold continues to be regarded as a key safe-haven asset for both retail and institutional investors.
