KEY POINTS
- 24-carat gold falls to Rs416,362 per tola and Rs356,963 per 10 grams
- Global bullion drops below $4,000/oz amid profit-taking and firmer dollar
- Analysts link reversal to rupee stability and easing safe-haven demand
- Market watchers term the fall a “healthy correction” after months of record highs
ISLAMABAD: Gold prices in Pakistan plummeted sharply on Tuesday, tracking a steep correction in global bullion as investors trimmed safe-haven exposure and the rupee held stable against the dollar.
According to the All Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of 24-carat gold declined by Rs 14,000 per tola, settling at Rs 416,362, while the 10-gram rate fell to Rs 356,963.
The sudden reversal follows months of uninterrupted gains that had pushed the precious metal to an all-time high above Rs 440,000 per tola earlier in October.
Traders said the fall mirrors global movements, where spot gold slipped below US$4,000 an ounce, marking its steepest single-day drop in nearly three weeks.
“The market had become overheated, and today’s correction was overdue,” a Karachi-based bullion dealer told WE News, adding that lower import premiums and a stable rupee have reduced speculative buying.
Underlying drivers and sentiment
Analysts attribute the fall to three interlinked factors — global profit-taking, reduced inflation hedging, and relative currency stability.
Internationally, investors have begun rotating funds out of gold amid firmer US Treasury yields and a modest recovery of the dollar, which raises the opportunity cost of holding non-yielding assets.
Domestically, the rupee’s consolidation near the 281-282 per dollar range has capped upward momentum, while inflation expectations have cooled compared to earlier quarters.
Gold had surged over the past six months amid global uncertainty, central bank buying, and local inflation-hedging-driven prices to unprecedented highs.
Between June and early October, the tola price in Pakistan increased by more than Rs 80,000, chiefly driven by international trends and a weak rupee.
But analysts now see a phase of normalisation. “As both external and domestic pressures ease, gold is entering a consolidation band — it’s not a crash, but a return to equilibrium,” an APGJSA representative told Business Recorder.
Global linkages and the road ahead
On the global front, the World Gold Council (WGC) reported a slowdown in central-bank purchases in Q3 2025, reducing one of the key supports behind gold’s extraordinary run.
Meanwhile, expectations of a delayed rate cut by the US Federal Reserve have bolstered the dollar index, triggering profit-taking in bullion markets.
In Pakistan, jewellers expect prices to stabilise near current levels if the rupee remains steady. However, any geopolitical flare-up or renewed inflationary pressure could once again reignite safe-haven demand.
