Gold Prices Continue to Fall in Pakistan — Per Tola Drops Sharply Amid Global Decline
Gold prices in Pakistan continued to decline on Thursday, reflecting another sharp downturn in the international bullion market. The latest update from the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA) shows that the price of gold per tola has fallen to Rs. 441,462 after a drop of Rs. 1,700 during the day. This marks the second consecutive day of notable losses, signaling a weakening trend in both local and global precious metal markets.
Just a day earlier, gold prices had already slipped by Rs. 2,700, bringing the per tola rate down to Rs. 444,162. Today’s additional decrease has pushed the price even lower, raising questions among investors and traders about the direction of the market in the coming days. The 10-gram gold rate also followed this downward trajectory, dropping by Rs. 1,457 to reach Rs. 378,482.
The consistent reduction highlights how closely Pakistan’s domestic market remains connected to global gold movements. Investors track international bullion performance because fluctuations in global prices significantly impact local rates, especially when combined with currency movements and changing economic policies.
Global Market Sees Another Downturn
Gold’s decline in Pakistan mirrors what is happening in the international market. Globally, the price of gold dropped by $17, falling to $4,191 per ounce including premium. Spot gold slipped 0.5 percent to $4,179.71 per ounce, while U.S. gold futures for December delivery were also down by 0.5 percent, trading at $4,210.20 per ounce.
These declines are mainly linked to ongoing profit-taking by global investors. After a period of strong bullish momentum, traders are now locking in profits ahead of next week’s highly anticipated U.S. Federal Reserve meeting. The meeting is expected to provide crucial signals regarding interest rates and future economic policies.
A higher interest rate environment typically weakens gold demand because investors shift toward high-yield assets. As a result, even small hints of possible interest rate hikes can push gold prices downward in the global market.
Silver Prices Also Decline
The impact of the market slowdown is not limited to gold. Silver prices in Pakistan also experienced a drop on Thursday. The per tola silver rate fell by Rs. 85, bringing the updated price to Rs. 6,000. This decline is consistent with global trends, as silver—like gold—is heavily influenced by investor sentiment, global economic performance, and commodity futures.
The fall in both gold and silver prices indicates a broader shift in the precious metals market, fueled by uncertainty among international investors.
Why Gold Prices Are Falling: Key Reasons Explained
Gold is traditionally seen as a safe-haven investment, especially during inflation, economic uncertainty, and geopolitical tensions. However, several factors are currently contributing to the ongoing decline in prices:
1. Profit-Taking by Investors
After weeks of strong price rallies, many investors are securing profits before the U.S. Federal Reserve’s meeting. This typically reduces demand and leads to price corrections.
2. Anticipation of U.S. Interest Rate Decisions
Gold does not generate interest, so when interest rates rise, investors prefer assets that offer better returns. The possibility of rate hikes often pushes gold prices down.
3. Strengthening of the U.S. Dollar
A stronger dollar usually puts pressure on gold, making it more expensive for holders of other currencies. This reduces international demand and impacts prices globally and locally.
4. Reduced Safe-Haven Demand
As global economic indicators show slight improvement, traders have shifted focus to other investment opportunities, reducing the demand for gold.
These combined factors explain why gold prices continue to fall both internationally and within Pakistan.
Impact on Local Pakistani Market
The continued decline in gold prices has led to noticeable shifts in buying behavior across Pakistan. Gold is a culturally significant commodity, often purchased during wedding seasons, religious events, and as a long-term investment. When prices fall sharply, buyers typically adopt a wait-and-see strategy, anticipating further drops before making major purchases.
Gold traders in local Sarafa bazaars across Karachi, Lahore, Multan, Faisalabad, and Peshawar reported that market activity slowed as consumers expected additional declines. The downward trend is creating uncertainty among jewellers as well, who rely heavily on stable pricing for planning and sales.
Economic Indicators to Watch in the Coming Days
As the international gold market remains unstable, several factors could influence the price direction in Pakistan:
1. U.S. Federal Reserve Meeting
Any announcement related to interest rates will significantly impact global gold prices. A decision to maintain or reduce rates may help stabilize or boost gold prices again.
2. Dollar to PKR Exchange Rate
The exchange rate remains a major factor. A weaker rupee amplifies the cost of gold even when global prices drop, while a stronger rupee can reduce local rates further.
3. Seasonal Demand
Winter and spring wedding seasons typically increase gold demand in Pakistan. If prices continue to fall, buyers may return to the market, creating upward pressure.
4. International Economic Data
Upcoming U.S. inflation figures, employment reports, and manufacturing indicators will drive investor sentiment in the global bullion market.
Expert Opinion on the Gold Market Trend
Financial analysts suggest that while the current decline is significant, it may not last long. If the U.S. Federal Reserve signals a softer stance on interest rates moving forward, gold could regain momentum. Historically, gold performs well during uncertain economic phases, and any major geopolitical or economic developments could reverse the current trend.
Some experts also highlight that gold remains a strong long-term investment regardless of short-term volatility. Investors who buy during dips often benefit when prices rebound.
Conclusion – Gold Prices Continue to Fall in Pakistan
Gold Prices Continue to Fall in Pakistan as the per tola rate drops sharply to Rs. 441,462, continuing a two-day downward trend. With global gold markets also showing weakness amid profit-taking and anticipation of the U.S. Federal Reserve’s decisions, local prices are expected to remain sensitive in the upcoming days.
Whether the market stabilizes or experiences further decline will depend on international economic signals, interest rate announcements, and exchange rate movements. For now, gold buyers are cautiously waiting, while sellers remain watchful of global trends that are shaping the domestic market.
