Islamabad, May 22, 2025 – Gold prices in Pakistan experienced a notable decline on Thursday, reflecting a downward trend in international markets. The drop has sparked discussions among investors and consumers, as gold remains a key asset for savings and investment across the country.
According to local bullion market reports, the price of 24-karat gold per tola fell by PKR 1,200, settling at PKR 238,500. Similarly, 10 grams of 24-karat gold saw a reduction of PKR 1,030, bringing the price to PKR 204,450. The price of 22-karat gold, widely used for jewelry, also decreased, with a tola priced at PKR 218,625.
The decline in domestic gold rates aligns with a broader correction in global markets, where spot gold prices dropped by 0.8% to $2,365 per ounce. Analysts attribute this slide to a stronger U.S. dollar and shifting investor sentiment following recent economic data. In Pakistan, the interplay of international rates and local demand continues to shape the market, with jewelers reporting a cautious approach from buyers.
“Gold prices are sensitive to global economic signals,” said Asim Raza, a Karachi-based bullion trader. “With international prices easing, we’re seeing a direct impact here. Many customers are holding off on purchases, expecting further dips.”
The drop has mixed implications. For investors, lower prices present a potential buying opportunity, while those holding gold may face short-term losses. Jewelers, particularly in urban centers like Lahore and Karachi, are adjusting their pricing strategies to attract customers ahead of the wedding season, a peak time for gold purchases in Pakistan.
Meanwhile, silver prices remained relatively stable, with a tola priced at PKR 2,850, offering an alternative for budget-conscious buyers. Market observers suggest that gold prices may face further volatility in the coming weeks, driven by global economic developments and currency fluctuations.
As Pakistan’s economy navigates inflationary pressures and currency challenges, gold continues to be a barometer of financial sentiment. Traders and consumers alike are keeping a close watch on international trends, with hopes that stability will return to the market soon.
