Gold Prices Drop Sharply. Gold prices in Pakistan have witnessed a massive decline, bringing the price of gold close to Rs. 5 lakh per tola. The sharp decrease was recorded in the local bullion market on Friday, causing surprise among investors, traders, and consumers alike.
According to data released by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of gold dropped significantly in a single day, reflecting volatility in both local and international markets.
24-Karat Gold Price Falls by Over Rs. 21,000 Per Tola
As per official figures, the price of 24-karat gold per tola decreased by Rs. 21,400, settling at Rs. 507,762. This sharp drop marks one of the biggest single-day declines in recent weeks.
Market experts say that such a steep fall is unusual and is largely linked to declining prices in the international bullion market, along with local market adjustments.
Price of Gold Per 10 Grams Also Declines
Alongside the per tola price, the cost of gold per 10 grams also witnessed a notable decrease.
- 10 grams of 24-karat gold fell by Rs. 18,347 to reach Rs. 435,324
- 10 grams of 22-karat gold dropped by Rs. 16,819, settling at Rs. 399,061
This reduction has slightly eased the financial burden on buyers, especially those planning purchases for weddings and investment purposes.
Silver Prices Follow Downward Trend
Not only gold, but silver prices also recorded a downward trend in the local market. The price of silver per tola decreased by Rs. 1,430, bringing it down to Rs. 7,825.
Similarly, the price of 10 grams of silver declined by Rs. 1,226, settling at Rs. 6,708. Traders noted that silver prices often move in line with gold, particularly during periods of international market uncertainty.
International Market Sees Heavy Decline in Gold and Silver
The sharp fall in local prices closely mirrors trends in the global market. In the international bullion market, gold prices dropped significantly by $214 per ounce, bringing the rate down to $4,850 per ounce.
Silver prices also faced heavy losses internationally, falling by $14.30 per ounce to settle at $73.50 per ounce. Analysts believe that changes in global interest rates, investor sentiment, and currency movements have played a key role in this decline.
Factors Behind the Sudden Drop in Gold Prices
Experts cite multiple reasons behind the sudden decrease in gold prices:
- Decline in international gold rates
- Stronger US dollar affecting commodity prices
- Reduced demand from major global markets
- Profit-taking by investors after recent highs
Gold is traditionally considered a safe-haven asset, but during times of economic shifts, prices can fluctuate sharply.
Impact on Investors and Local Buyers
The sudden drop in gold prices has created mixed reactions among investors. While short-term traders may face losses, long-term investors see this decline as an opportunity to enter the market at relatively lower prices.
For local consumers, especially those planning weddings or jewelry purchases, the price drop has brought some relief after months of consistently high rates.
Sarafa Market Reaction in Pakistan
Jewellers in major cities such as Karachi, Lahore, and Islamabad reported increased inquiries following the price drop. However, many buyers are still cautious and waiting to see whether prices will stabilize further or decline again.
Sarafa traders have advised customers to stay updated with daily price movements before making large purchases.
Conclusion
The recent massive decline in gold prices, bringing rates close to Rs. 5 lakh per tola, marks a significant development in Pakistan’s bullion market. With gold and silver both recording sharp losses locally and internationally, market volatility remains high.
