Gold prices in Pakistan dropped on Friday after reaching new peaks earlier this week. The decline followed the global trend, where international markets also showed weakness.
According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of gold per tola decreased by Rs2,500, closing at Rs407,778. The rate of 10 grammes fell by Rs2,144 to Rs349,603. Just two days earlier, gold touched an all-time high of Rs410,278 per tola after a sharp single-day increase of Rs3,500.
The recent dip reflects international market movement. Globally, gold slipped to $3,865 per ounce, down $25 from earlier levels. Despite this drop, the metal remains near historic highs. Spot gold stayed close to Wednesday’s record of $3,895.09 per ounce, while US gold futures for December delivery were slightly lower at $3,891.40.
Silver, however, gained momentum. Its price in Pakistan rose by Rs13 to Rs4,839 per tola. Internationally, silver and other precious metals also showed strength, with platinum and palladium recording notable gains.
The record-breaking rally in gold was fueled by global economic uncertainty. Weak US jobs data increased expectations of interest rate cuts by the Federal Reserve. A weaker dollar and potential rate reductions tend to support demand for gold as a safe-haven asset. Political instability in Washington, including a partial government shutdown, also added to investor interest.
Analysts believe gold may continue its record-breaking rally. Goldman Sachs has raised its price forecast, pointing to growing investor demand. Meanwhile, SPDR Gold Trust, the world’s largest gold-backed ETF, reported higher holdings this week, reflecting stronger buying interest.
In Pakistan, the soaring prices have made gold a hot topic among investors and jewellers. But for households, the rally has placed gold jewellery out of reach, particularly for weddings and savings. The market now watches closely to see if the rally will continue or cool further in the coming weeks.
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