Gold prices flat in Pakistan amid cooling international demand

KARACHI: After weeks of sharp swings, gold prices in Pakistan held steady on Thursday, giving local buyers and investors a brief pause from the relentless rally that has defined September so far.

According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of 24-karat gold per tola remained unchanged at Rs388,600. Similarly, the 10-gramme price also stayed flat at Rs333,161.

Silver, however, saw a slight uptick, climbing by Rs31 to reach Rs4,418 per tola.

International market cools after Fed decision

The lull in the local market comes as global gold prices also paused after reaching record highs earlier this week. Spot gold slipped 0.1 percent to $3,657.21 an ounce as of 0801 GMT, easing from the previous session’s all-time high of $3,707.40. US gold futures for December delivery were also down 0.7 percent at $3,691.

The softening followed the US Federal Reserve’s widely expected decision to cut interest rates by 25 basis points. While the move was anticipated, traders had hoped for stronger signals about aggressive easing ahead.

Fed Chair Jerome Powell described the cut as a “risk-management” step aimed at cushioning a weakening labour market, while stressing that future rate decisions would be made on a “meeting-by-meeting” basis.

“There is a bit of disappointment, which is reflected in the gold price, because the market expected that the opportunity cost for holding gold would decline more strongly than the Fed decided,” said Peter Fertig, an analyst at Quantitative Commodity Research.

The dollar index rose 0.2 percent following the announcement, after plunging to a three-and-a-half-year low a day earlier. The firmer greenback made gold slightly more expensive for buyers holding other currencies, further weighing on sentiment.

A volatile September for gold in Pakistan

Gold has been on a wild ride in Pakistan throughout September, mirroring the turbulence in the international market.

Here’s a table showing per tola gold prices throughout September 2025 in Pakistan:

The month opened with a surge, with prices jumping to a then-record Rs370,700 per tola on September 1. After holding steady the next day, gold rocketed to fresh peaks on September 3 at Rs376,700, and again on September 5 at Rs377,900.

The rally intensified in the second week, with prices hitting Rs384,000 on September 8 and then Rs388,100 on September 9. After a brief pause, they shot up again to an all-time high of Rs391,000 on September 16, before slipping back to Rs388,600 on September 17.

Despite the dips, gold has gained sharply overall this month, driven largely by global uncertainty and speculation over how far the Fed will go in lowering borrowing costs.

What lies ahead

For now, the local bullion market appears to be taking a breather. Traders say future moves will hinge on global cues, especially how the dollar and interest rates behave in the coming weeks.

With gold still hovering near historic highs both locally and internationally, many investors remain cautious but attentive, waiting to see if this is a short-lived pause or the start of a broader pullback.

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