Gold prices in Pakistan experienced a steep decline on Saturday, with the price per tola dropping by Rs5,500 to settle at Rs320,000 in the local market. The fall, reported by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), reflects a significant shift following a period of record highs, catching the attention of traders and consumers alike.
The price of 10-gram gold also saw a notable decrease, slipping by Rs4,714 to reach Rs274,348. This downturn comes shortly after the local market reopened following the Eidul Fitr holidays, during which gold had scaled new peaks. Just days ago, the price per tola had hit Rs325,500, while 10 grams were valued at Rs279,063, fueled by robust demand and speculative buying.
Traders attribute the sudden drop to a mix of local factors, including profit-taking by investors who capitalized on the earlier surge, and a recalibration of market sentiment. Earlier in the week, gold prices had soared to unprecedented levels, with some analysts pointing to heightened economic uncertainty and currency fluctuations as key drivers. The precious metal’s value had climbed steadily, nearing historic benchmarks, before this abrupt correction.
For consumers, the price drop offers a potential buying opportunity, particularly ahead of wedding seasons when gold demand typically spikes. However, jewellers who purchased stock at higher rates may face challenges, with one Lahore-based merchant noting, “It’s a balancing act—lower prices could draw in buyers, but our profits are squeezed.” Meanwhile, the APGJSA suggests that the market could stabilize soon, though volatility remains a concern.
With gold often seen as a hedge against inflation, its fluctuating value continues to stir debate among investors. Whether this dip marks a fleeting correction or a longer trend, Pakistan’s gold market remains a focal point of economic intrigue.
