Karachi, May 27, 2025 – Gold prices in Pakistan witnessed a sharp drop of Rs3,600 per tola on Tuesday, aligning with a downward trend in global gold markets.
The decrease reflects changing investor sentiment and easing geopolitical tensions worldwide, which reduced safe-haven demand for gold.
In the domestic bullion market, the price of 24-karat gold per tola fell to Rs347,900, down from Rs354,500 recorded a day earlier. Similarly, the price for 24-karat gold per 10 grams declined by Rs3,086, closing at Rs298,268 compared to Rs301,354 in the previous session. This significant fall follows a record-breaking high of Rs363,700 per tola in Pakistan on April 22, 2025.
According to bullion traders, the primary reason behind the drop in gold prices in Pakistan is the global decline in the yellow metal’s value. On Tuesday, global gold prices dropped by $36 per ounce, settling at $3,295, down from the previous close of $3,331. This international slide has directly impacted gold rates in the local markets of Pakistan.
Experts in the local bullion market noted that easing global trade tensions, coupled with speculation of interest rate adjustments by the U.S. Federal Reserve, have reduced demand for gold as a safe-haven asset. As stability gradually returns to global financial markets, investors appear to be shifting away from gold, resulting in falling prices globally and in Pakistan.
They also pointed out that gold, often seen as a hedge against economic uncertainty, had surged in the previous months due to inflationary fears and currency volatility. However, recent indicators of global economic recovery have reversed this trend. In Pakistan, where the local market closely follows global gold trends, any significant shift in international pricing has an immediate effect.
The fall in prices may offer temporary relief to gold buyers in Pakistan, particularly for those planning weddings or investments in the precious metal. However, experts advise caution as the global gold market remains sensitive to geopolitical developments, inflation data, and monetary policy decisions from major economies.
In summary, Tuesday’s drop in gold prices in Pakistan reflects broader global market dynamics, demonstrating how tightly the local bullion trade is linked to international trends.