Gold prices in Pakistan fell by Rs1,800 per tola on Monday, tracking a decline in international bullion markets as investors reassessed expectations for the pace of global interest rate cuts. The retreat marks the second consecutive session of losses, extending a downward trend that began over the weekend.
Domestic Prices Track International Slide
The per-tola rate settled at Rs466,136 after Monday’s decline, while the price of 10 grams eased to Rs399,636, down Rs1,543. Internationally, gold slipped $18 to trade around $4,436 per ounce as traders booked profits following a strong run over recent weeks. Silver moved in the opposite direction, gaining Rs67 to close at Rs7,179 per tola, reflecting divergent investor positioning between the two precious metals.
A Second Straight Session of Losses
Monday’s decline follows an even sharper drop on Saturday, when gold shed Rs15,100 per tola in a single session. The back-to-back losses mark one of the steepest short-term corrections this year, after gold had rallied for much of August on safe-haven demand tied to global economic uncertainty. Analysts say the pullback reflects profit-taking rather than a fundamental shift in sentiment, with several brokers describing the medium-term outlook as still broadly supportive for bullion.
What It Means for Savers and Jewellers
Gold remains a popular hedge for Pakistani households against elevated inflation, and even a Rs1,800 dip does little to change the metal’s appeal for long-term savers. Jewellers in major bullion markets, including Karachi’s Saddar and Lahore’s Sarafa Bazaar, reported a modest uptick in walk-in buyers taking advantage of the lower rate, though wedding-season demand typically has a bigger influence on daily volumes than short-term price swings.
Rupee and Broader Market Context
The gold market’s moves come as investors continue to weigh currency and equity trends, with the stock market having seen its own bout of volatility amid Middle East tensions in recent sessions. Economists note that gold and equities often move independently of each other in the short run, but sustained weakness in one can occasionally spill over into sentiment for the other, particularly when both are being driven by the same global risk backdrop.
For now, market watchers expect gold prices to remain choppy over the coming week as traders digest fresh economic data from major economies, with local rates likely to continue mirroring whichever direction international benchmarks take.
The State Bank of Pakistan does not intervene directly in the domestic gold market, leaving prices largely a function of international rates converted at the prevailing rupee-dollar exchange rate, alongside local supply and demand from jewellers and bullion dealers.
