KARACHI, May 12, 2025 – Gold prices in Pakistan saw a major decline on Monday, dropping by Rs10,400 per Tola, as global and regional economic conditions showed signs of improvement. This steep fall is one of the largest in recent weeks, reflecting a shift in market sentiment.
According to local bullion markets, the price of 24-karat gold per Tola fell to Rs340,500, down from the previous rate of Rs350,900. This drop follows another significant fall of Rs11,700 per Tola on April 22, 2025, which had set a record for the biggest single-day price reduction in Pakistan.
Similarly, the price of 24-karat gold per 10 grams dropped by Rs8,917, reaching Rs291,923, compared to Saturday’s closing price of Rs300,840. Experts in Pakistan’s bullion market explained that the drop in gold prices is largely due to the weakening of gold prices in the international market.
One of the key factors contributing to this price plunge is the recent improvement in the geopolitical situation. The ceasefire agreement between Pakistan and India has brought relief to the regional markets, reducing uncertainty. Additionally, successful trade negotiations between the United States and the United Kingdom, and also between the U.S. and China, have further strengthened global economic confidence.
As a result, the international gold price dropped by $104 per ounce, closing at $3,221, compared to the earlier rate of $3,325 per ounce. This international dip directly influenced the downward trend in gold prices in Pakistan.
Gold dealers across Pakistan said that while this decline may seem sudden, it was expected due to ongoing positive developments. Many buyers who were waiting for a price correction may now re-enter the market.
As gold remains a popular investment and cultural asset in Pakistan, especially in the form of Tola-based purchases, such fluctuations in prices play a significant role in the local economy. Experts advise potential buyers to stay updated, as prices may continue to adjust with further changes in global markets.