Karachi, April 27, 2025 – Gold prices in Pakistan have experienced a dramatic drop, sending ripples through local markets and catching the attention of investors and consumers alike. According to the All-Pakistan Gems and Jewellers Association, the price of 24-karat gold per tola fell by Rs4,200, settling at Rs344,500, while the price of 10 grams of gold decreased by Rs3,600 to Rs295,350. This significant decline follows a period of historic highs, reflecting a broader correction in the global bullion market.
The sharp fall in gold prices is largely attributed to a stabilization in international demand and a stronger US dollar, which has reduced the appeal of gold as a safe-haven asset. Globally, gold prices dropped by $30 per ounce, reaching $3,275, influenced by easing geopolitical tensions and profit-taking by investors after months of sustained gains. Local traders in Karachi’s Sarafa Bazar noted that the decline mirrors these international trends, with additional pressure from reduced consumer demand post-Eid festivities.
Market analysts suggest that the correction was anticipated after gold reached a peak of Rs357,800 per tola earlier this month. “The market was overheated, and investors were cashing in on the high prices,” said Hassan Mehmood, a bullion trader in Lahore. He added that the drop could benefit buyers looking to purchase gold for weddings or investments, as prices are now more affordable compared to recent weeks.
Silver prices, however, remained relatively stable, with 24-karat silver per tola holding steady at Rs3,490. This contrast highlights gold’s sensitivity to global economic shifts, while silver maintains a steadier demand in industrial applications.
The decline has sparked mixed reactions. Jewellery shop owners in Islamabad reported a slight uptick in inquiries from customers hoping to capitalize on the lower prices. Meanwhile, investors who purchased gold at its peak are adopting a cautious approach, waiting to see if prices will stabilize or drop further. “Gold is still a reliable asset in uncertain times, but timing is everything,” said Ayesha Khan, a financial consultant in Rawalpindi.
Looking ahead, experts predict that gold prices in Pakistan will continue to be influenced by global factors, including US interest rate policies and currency fluctuations. While some analysts remain optimistic about gold’s long-term value, others warn of potential volatility in the short term. For now, the market is in a wait-and-see mode, with all eyes on international developments.
As Pakistan’s gold market adjusts to these changes, consumers and investors are advised to stay informed and consult with trusted dealers before making decisions. The current dip may present opportunities, but the dynamic nature of the bullion market calls for careful consideration.
