Karachi( The COW News Digital) Gold prices in Pakistan fell sharply on Friday, with the per tola rate dropping by Rs1,500 amid fluctuations in the international bullion market. The decline comes as global investors adjust their positions in response to shifting economic indicators.
According to the All Pakistan Gems and Jewellers Association (APGJA), the price of gold per tola in the domestic market decreased to Rs355,700 from its previous rate. Similarly, the price of 10 grams of gold dropped by Rs1,286, settling at Rs304,955.
In the international market, gold prices also experienced a dip. The global rate fell by $15 per ounce, bringing the price down to $3,330. Analysts attribute the international decline to stronger U.S. dollar movements and expectations of central banks’ monetary policies, particularly regarding potential interest rate adjustments.
Gold has long been considered a safe-haven asset for investors in Pakistan, where inflationary pressures and currency fluctuations drive demand. However, short-term price movements are often influenced by global market trends, making domestic prices sensitive to international shifts.
Jewellers and traders in Pakistan said that while the price drop may benefit customers ahead of the upcoming wedding season, demand remains subdued due to persistently high overall rates. “Even though prices have come down slightly, gold remains unaffordable for many families,” a Karachi-based jeweller commented.
Market experts believe that if global gold prices continue to slide, local rates could see further corrections in the coming weeks. However, much will depend on the international economic outlook, including inflation data, interest rate decisions by the U.S. Federal Reserve, and geopolitical developments.
Despite the decline, Pakistan continues to face challenges in gold imports, as restrictions on foreign exchange and dollar shortages limit accessibility. This has created volatility in the local gold trade, with prices often diverging from international trends.
The recent price correction reflects broader uncertainty in the global commodities market. Investors are closely monitoring signals from the Federal Reserve, while demand in major gold-buying nations such as China and India also plays a critical role in shaping future trends.
For now, jewellers advise customers to remain cautious, noting that while the current dip offers temporary relief, volatility is likely to persist.
