Prices of Gold and Silver Suddenly Drop in Pakistan After Big Rally. After a strong upward rally earlier this week, gold and silver prices in Pakistan fell sharply on Thursday, surprising investors, jewellers, and buyers across the country. The sudden decline came after record-high levels seen just a day earlier, signaling a short-term correction in the precious metals market.
According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), gold prices dropped significantly in the local market, while silver also followed the downward trend.
Gold Prices Drop Sharply in Pakistan
The price of gold per tola declined by Rs. 3,700, bringing the new rate down to Rs. 482,462 per tola in the domestic market.
Similarly, the price of 10 grams of gold also moved lower. It fell by Rs. 3,172, and is now being sold at Rs. 413,633.
This sudden drop ended a strong rally that had pushed gold prices to historic highs earlier in the week.
Gold Prices a Day Earlier
Just one day earlier, on Wednesday, gold prices had surged sharply. The price of gold per tola closed at Rs. 486,162, after gaining Rs. 4,300 during the trading session.
The rapid rise followed by an equally fast correction reflects the high volatility currently seen in the global and local bullion markets.
International Gold Prices Also Decline
The domestic price drop was influenced by movements in the global market. In the international bullion market, gold prices fell by $37 per ounce, settling at $4,601 per ounce, including a premium of $20.
International gold prices often guide local rates in Pakistan, especially when changes are sharp. The recent decline suggests profit-taking by global investors after gold reached multi-month highs.
Silver Prices Also Fall
Silver prices in Pakistan also moved lower alongside gold.
- Silver per tola price declined by Rs. 150
- New silver rate stands at Rs. 9,425 per tola
Although silver’s decline was smaller compared to gold, it still reflects the overall cooling in precious metals prices after the recent rally.
Why Did Gold and Silver Prices Fall?
Several factors contributed to the sudden drop in prices:
1. Profit-Taking After Record Highs
Gold prices had risen rapidly in recent sessions. Many investors chose to lock in profits, leading to a short-term correction.
2. International Market Adjustment
The fall in global gold prices directly impacted local rates, as Pakistan’s bullion market closely follows international trends.
3. Strong Rally Was Unsustainable
Sharp price increases in a short time often lead to pullbacks. The latest decline appears to be a technical correction rather than a long-term reversal.
4. Currency and Economic Signals
Fluctuations in the US dollar and global economic signals also play a role in gold price movements, influencing investor sentiment.
Impact on Buyers and Investors
For Buyers
The price drop provides temporary relief for buyers planning weddings, jewellery purchases, or investments. However, prices remain historically high despite the correction.
For Investors
Short-term traders may see this as a normal market adjustment. Long-term investors continue to view gold as a hedge against inflation and economic uncertainty.
For Jewellers
Jewellers expect mixed sentiment. While lower prices may attract buyers, uncertainty keeps many customers cautious.
Gold and Silver Prices in Pakistan – Quick Overview
| Metal | Unit | Change | Latest Price |
|---|---|---|---|
| Gold | Per Tola | ▼ Rs. 3,700 | Rs. 482,462 |
| Gold | 10 Grams | ▼ Rs. 3,172 | Rs. 413,633 |
| Silver | Per Tola | ▼ Rs. 150 | Rs. 9,425 |
Market Outlook: What to Expect Next
Market experts believe gold prices may remain volatile in the coming days. Any further movement will largely depend on:
- International gold price trends
- Global inflation data
- Central bank policy signals
- Investor demand for safe-haven assets
While short-term corrections are expected, many analysts still see strong long-term support for gold due to ongoing global economic uncertainty.
Conclusion
The sudden drop in gold and silver prices in Pakistan has brought a pause to an aggressive rally that pushed rates to record levels earlier this week. With gold falling by Rs. 3,700 per tola and silver also declining, the market has entered a phase of correction driven by international price movements and profit-taking.
Despite the fall, precious metals remain expensive by historical standards. Buyers and investors are advised to closely monitor global trends before making major decisions, as volatility is likely to continue in the near term.
