Gold and silver prices extended their downward trend in both international and local markets, reflecting growing volatility driven by global economic uncertainty and shifting investor sentiment.
According to the latest data, gold prices in the international bullion market dropped by $81 per ounce to $4,686, continuing a broader decline observed in recent sessions.
In Pakistan, the impact was immediate and significant. The price of gold per tola fell by Rs8,100 to Rs491,362, while the rate for 10 grams declined by Rs6,945 to Rs421,263.
Silver prices also followed the same trajectory. The per tola price decreased by Rs50 to Rs7,684, while the 10-gram rate dropped by Rs43 to Rs6,587.
Continued Decline Reflects Global Pressures
The latest drop comes after a sharp fall recorded a day earlier, when gold prices in Pakistan plunged by Rs24,300 per tola, highlighting the scale of volatility in the bullion market.
Globally, gold has been under pressure due to a combination of factors, including rising geopolitical tensions, inflation concerns, and changing expectations around interest rates. Analysts note that bullion markets often react strongly to such macroeconomic shifts, as investors adjust their positions between safe-haven assets and higher-yield investments.
Recent international trading data showed gold falling nearly 4 percent in a single session, reaching one of its lowest levels in weeks.
Local Market Mirrors International Trends
Pakistan’s gold market closely follows global price movements, with rates determined daily by the All-Pakistan Gems and Jewellers Sarafa Association based on international benchmarks.
The latest decline highlights how quickly global changes are transmitted into domestic markets. Just days earlier, gold had remained stable at Rs523,762 per tola, before experiencing sharp fluctuations.
Silver has also shown consistent weakness alongside gold, indicating a broader correction across precious metals rather than isolated movement.
What Is Driving the Price Drop
Experts point to multiple factors behind the ongoing decline. Rising global uncertainty, particularly geopolitical tensions, has created instability in commodity markets. At the same time, persistent inflation concerns and interest rate expectations are influencing investor behavior.
Traditionally, gold is seen as a safe-haven asset during uncertain times. However, when interest rates rise or economic conditions shift, investors often move toward assets that offer better returns, putting pressure on gold prices.
Impact on Consumers and Investors
The decline in gold prices may offer temporary relief to consumers, particularly ahead of Eid, when demand for gold jewelry typically increases in Pakistan.
However, for investors, the volatility raises concerns about short-term stability. Frequent price swings make it difficult to predict market direction, forcing traders to adopt cautious strategies.
Jewellers say that while falling prices may boost short-term buying, uncertainty in the market continues to affect overall demand.
