Gold prices in Pakistan nosedived this week, marking one of the sharpest single-day drops in months. The precious metal’s 24-karat rate tumbled by nearly Rs 14,000 per tola, reflecting a combination of global weakness and improving local currency conditions. Experts see this as a market correction after months of record-high prices.
Gold Prices Crash Across Pakistan
The gold market in Pakistan witnessed a sudden and steep fall this week as 24-karat gold dropped by Rs 14,000 per tola, bringing the new rate down to around Rs 416,000 per tola. Similarly, 10 grams of 24-karat gold declined by Rs 12,000, settling near Rs 357,000.
This comes after gold had been trading near historic highs throughout October, driven by economic uncertainty and a weaker rupee. The sudden crash has caught both investors and jewellers off guard, sparking speculation about the next move in the bullion market.
What Triggered the Massive Drop
Analysts attribute the sudden decline to a combination of international and domestic factors:
- Global Market Correction – International gold prices slid sharply, falling by over $140 per ounce in recent sessions. This global sell-off was fueled by easing geopolitical tensions and stronger-than-expected U.S. economic data, which reduced investor demand for safe-haven assets, such as gold.
- Stronger Pakistani Rupee – The local currency strengthened slightly against the U.S. dollar this week, making imports — including gold — cheaper in local terms.
- Profit-Taking by Investors – After months of rising prices, many local investors and traders booked profits, putting downward pressure on local rates.
- Reduced Demand Ahead of Winter – The post-wedding-season slowdown and weaker retail demand also contributed to the dip, as jewelers adjusted their pricing to reflect lower foot traffic.
How This Impacts Buyers and Sellers
For buyers, this may finally be a moment of relief. After weeks of soaring rates, the sharp fall has made jewellery purchases slightly more affordable. However, jewellers warn that making charges and market margins may still keep final prices elevated.
For investors, the decline serves as a reminder of gold’s volatility. Many Pakistanis hold gold as a hedge against inflation and currency depreciation, but this week’s crash shows that short-term corrections can be steep and sudden.
Meanwhile, sellers who bought gold at recent highs might prefer to hold onto their holdings until prices stabilize or rebound, rather than selling into a weak market.
City-Wise Gold Rates (Approximate)
- Karachi – Rs 416,000 per tola
- Lahore – Rs 416,200 per tola
- Islamabad – Rs 416,100 per tola
- Peshawar – Rs 415,900 per tola
- Quetta – Rs 416,300 per tola
(Rates may vary slightly across different cities due to local market premiums.)
You can check live daily gold prices here.
What Lies Ahead
Market experts believe this may be a short-term correction rather than the start of a long downward trend. If the rupee weakens again or global uncertainty rises, gold prices could bounce back quickly. However, if international markets remain stable and the local currency strengthens further, prices might stay subdued for a while.
For now, the consensus among analysts is cautious optimism — they see this dip as part of gold’s natural price cycle rather than a sustained collapse.
Bottom Line
The recent crash in gold prices has reset the tone of Pakistan’s bullion market. While it may bring temporary relief for buyers, volatility remains high, and further fluctuations are likely. Whether this marks a new buying opportunity or a warning sign will depend on how both the rupee and global gold markets behave in the coming days.
by PK Tax Calculator