After days of strong upward momentum, gold and silver prices in Pakistan recorded a sharp decline on Thursday, surprising investors and buyers who had witnessed a rapid rally in recent sessions. The sudden pullback reflects changes in the international bullion market and short-term profit-taking at the local level.
Gold Prices See Notable Correction
According to data released by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of gold per tola fell sharply by Rs 3,700, bringing the new rate to Rs 482,462 per tola in the domestic market.
Similarly, the price of 10 grams of gold declined by Rs 3,172, with the metal trading at Rs 413,633. This reversal came just a day after gold prices had surged significantly, closing at higher levels following a strong intraday increase.
Market participants noted that the earlier rally had pushed prices to record highs, prompting selling pressure once international prices showed signs of easing.
International Gold Market Influences Local Rates
The decline in Pakistan closely followed developments in the global bullion market. International gold prices dropped by $37 per ounce, settling at $4,601, inclusive of a premium. Fluctuations in global prices typically have a direct impact on domestic gold rates, as Pakistan’s bullion market closely tracks international trends along with currency movements.
Analysts believe the latest drop reflects short-term market adjustments rather than a fundamental shift in demand, especially as gold remains a preferred hedge against inflation and economic uncertainty.
Silver Prices Also Move Lower
Alongside gold, silver prices in Pakistan also moved downward. The price of silver per tola decreased by Rs 150, reaching Rs 9,425 per tola. Silver often mirrors gold’s direction, though it is generally more volatile due to its industrial demand component.
What This Means for Buyers and Investors
The sudden dip may offer temporary relief to consumers planning jewelry purchases, while investors may view it as a pause after an aggressive rally rather than a long-term downturn. Historically, such corrections are common after rapid price increases.
Market watchers suggest keeping an eye on global economic indicators, interest rate expectations, and currency movements, as these factors will continue to influence precious metal prices in the coming days.
Outlook
While prices have eased for now, uncertainty in global markets means volatility is likely to continue. Buyers and investors are advised to stay informed and make decisions based on longer-term trends rather than short-term price swings.
