Karachi, May 26, 2025 – Gold prices experienced a significant decline on Monday, falling by Rs2,600 per tola in local markets following a notable drop in the international bullion market.
The price of 24-karat gold settled at Rs351,500 per tola, down from the previous closing of Rs354,100 in domestic markets.
Similarly, the rate of 24-karat gold per 10 grams also fell by Rs2,228, closing at Rs301,354 compared to Rs303,583 a day earlier in the local bullion trade. The decline comes just a month after gold prices reached an all-time high of Rs363,700 per tola on April 22, 2025, in local markets.
Market analysts and bullion traders attributed the sharp decline in local gold prices to weakness in the international market. On the global front, gold prices dropped by $26 per ounce, settling at $3,331 from the previous close of $3,357. Experts pointed to ongoing geopolitical tensions, a slowdown in global demand, and rising uncertainty over international trade tariffs as key contributors to the volatility in precious metal prices.
According to bullion dealers, investors are currently shifting focus away from safe-haven assets like gold, preferring more liquid options amid expectations of monetary tightening in major economies. The easing of international tensions in certain regions and a rebound in equity markets have also diminished the appeal of gold as a hedge, leading to reduced demand and lower prices.
In Pakistan, the impact of the global price dip was promptly reflected in the local markets, where traders and jewellers saw moderate buying activity as customers anticipated further corrections in gold prices. Despite the recent dip, dealers noted that prices remain relatively high compared to historical averages, keeping overall retail activity subdued.
Traders suggest that future movements in gold prices will largely depend on the direction of international markets and domestic currency fluctuations, especially against the US dollar. With continued uncertainty in global financial dynamics, local bullion markets are expected to remain sensitive to external shocks.
For now, stakeholders are keeping a close watch on global cues and hoping for stabilization, which could encourage more consistent trading activity in local markets.