Gold price decreases by Rs 8,600 per tola as global bullion retreats

KARACHI: Gold prices in Pakistan fell sharply on Friday, tracking losses in the international bullion market and reversing gains recorded earlier this week.

According to data released by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of gold per tola dropped by Rs 8,600 to settle at Rs 519,962 in the local market. Similarly, the rate for 10 grams declined by Rs 7,373 to Rs 445,783.

The downturn mirrors developments in global markets, where gold fell by $86 per ounce to $4,972, inclusive of a $20 premium. The decline comes just days after international prices had climbed to $5,035 per ounce, lifting domestic rates in tandem.

Earlier this week, on Tuesday, gold in Pakistan had extended gains as global rates edged higher. The price per tola had risen by Rs 1,500 to Rs 526,262, while 10-gram gold increased by Rs 1,286 to Rs 451,184. At the time, silver prices remained steady in the domestic market.

Friday’s session also saw weakness in silver. The price of silver per tola dropped by Rs 501 to Rs 8,324, reflecting broader pressure across precious metals.

Analysts say gold remains highly sensitive to fluctuations in international markets, currency movements and investor sentiment. As a globally traded commodity, local prices in Pakistan typically follow international trends, adjusted for exchange rates and import premiums.

Gold continues to play a central role in global financial systems. Central banks maintain bullion reserves as a hedge against currency volatility and as a strategic component of foreign exchange holdings. According to data compiled by Trading Economics, the United States holds the world’s largest gold reserves at approximately 8,133 tons, followed by Germany, Italy and France. Major Asian holders include China and India.

Pakistan’s own gold reserves stand at around 64.77 tons, placing it in the mid-tier globally. While modest compared to leading economies, analysts note that these holdings provide a measure of financial cushioning during periods of global economic uncertainty.

Market participants are urged to watch international price movements closely to gauge whether the latest correction signals short-term volatility or the start of a broader pullback in bullion markets.