Key Points
- Local gold rates dipped markedly on Friday, with the price of 24-karat gold per tola falling by over Rs 20,000 amid broader market corrections
- The slide in Pakistan mirrors weakening international bullion markets, with global gold prices also under pressure
- Silver prices eased alongside gold, while gold remains a key hedge for savers and investors in Pakistan
ISLAMABAD: Gold prices in Pakistan saw a sharp decline on Friday, with bullion markets adjusting to weakness in global precious metals, local market data showed.
According to the All-Pakistan Gems and Jewellers Sarafa Association, the price of 24-karat gold per tola dropped by Rs 21,400 on the day to Rs 507,762, reversing a recent upward trend in domestic rates. The price for 10 grams of 24-karat gold also fell to Rs 435,324.
The downturn followed a retreat in international markets where global gold prices fell, partly eroding earlier gains. In overseas bullion trading, gold quotes eased, reflecting sliding safe-haven demand as some investors reduced holdings and shifted to other assets.
Analysts say global economic cues, currency movements, and investor positioning in futures markets are contributing to heightened volatility.
Silver, which often moves in sympathy with gold, also saw its price per tola — a common local trading unit — decrease, highlighting a broader correction across precious metals following recent turbulent price swings.
Gold occupies an important place in Pakistan’s financial landscape, both as a cultural asset and an investment hedge against inflation and currency depreciation. Its prices are closely watched by households, jewelers, and investors, especially during times of economic uncertainty, as changes in bullion markets can directly affect savings and purchasing behaviour.
Market analysts noted that despite the recent drop, gold may retain appeal for long-term investors given its traditional role as a store of value during periods of macroeconomic stress. However, short-term price swings reflect sensitive responses to global economic data, currency strength, and shifting risk sentiment among traders.
The latest fall in domestic rates followed earlier volatility this week, during which prices had climbed before reversing course, underscoring the rapid ebb and flow of precious metals in both domestic and international markets.
