Gold prices in Pakistan have tumbled dramatically, with the precious metal losing Rs15,500 per tola in a single day as a global selloff swept through bullion markets, dealing a heavy blow to savers, investors, and families planning weddings across the country.
The price of gold per tola fell to Rs476,862 on Friday, down from Rs492,362 the previous day, according to the All-Pakistan Gems and Jewellers Sarafa Association. The price of 10 grams of gold dropped by Rs13,289 to Rs408,832, reflecting the severity of the downturn.
Internationally, spot gold plunged 2.3 percent to around $4,541 per ounce, hitting its lowest level in more than a week. The metal recorded a weekly decline of 3.7 percent as investors reacted to a strengthening US dollar and rising Treasury yields, both of which diminish the appeal of non-yielding assets like gold.
The decline continued into Saturday, with gold falling an additional Rs600 per tola to Rs476,262, and 10 grams dropping Rs515 to Rs408,317. Globally, the price slipped another $6 per ounce to $4,539.
Silver prices also tumbled sharply. On Friday, silver per tola fell Rs972 to Rs8,232, and by Saturday it had dropped a further Rs159 to Rs8,073. The 10-gram silver rate declined to Rs6,921.
Market analysts attribute the sharp correction to multiple factors. A stronger US dollar makes gold more expensive for buyers using other currencies, while rising bond yields increase the opportunity cost of holding gold. Geopolitical developments, including inconclusive diplomatic talks involving the United States, Iran, and China, have also weighed on sentiment.
Adnan Agar, Director at Interactive Commodities, noted that gold had been under sustained pressure after peaking near $4,665. He pointed to weak geopolitical outcomes and India’s decision to double import duties on gold and silver as additional headwinds dampening regional demand. However, he identified strong technical support levels near $4,400, suggesting the downside may be limited.
For Pakistani households, the decline carries significant implications. Gold is a cornerstone of savings and a critical component of wedding traditions, where families often purchase jewelry for brides. A drop of Rs15,500 per tola represents a substantial shift in purchasing power and investment value, affecting both those looking to buy and those holding gold as a store of wealth.
The volatility in gold prices reflects broader uncertainty in global financial markets. Rising inflationary concerns linked to higher energy prices have fueled expectations that the US Federal Reserve may keep interest rates elevated longer than anticipated, further pressuring gold.
Meanwhile, the Pakistani rupee recorded a slight gain against the US dollar, closing at Rs278.61 in the interbank market on Friday, up Rs0.01 from the previous day.
Analysts expect continued volatility in gold markets in the near term, driven by fluctuations in US monetary policy, currency movements, and evolving geopolitical tensions. For Pakistani investors and families, the recent decline offers both a potential buying opportunity and a reminder of the risks inherent in bullion markets.
