24-karat gold estimated to drop below Rs418,000 per tola amid sharp decline in international markets
KARACHI: Gold prices in Pakistan are estimated to have fallen sharply during the Ashura holidays as a deepening sell-off in international bullion markets pushed the precious metal to its lowest level in months, offering relief to buyers but raising concerns for investors.
Local bullion markets remained closed on June 25 and June 26 due to public holidays for Ashura-e-Muharram, resulting in the absence of official domestic gold rates during the period. However, based on prevailing international prices and exchange rate trends, the price of 24-karat gold is estimated to have dropped to around Rs417,624 per tola.
The estimated price represents a significant decline from Rs432,236 per tola recorded on June 23, 2026, according to rates issued by the All Pakistan Gems and Jewellers Association, reflecting the sharp correction witnessed in global precious metals markets.
Internationally, gold prices came under heavy pressure as bullion slipped below the $4,000-per-ounce level, reaching its lowest point in approximately seven months. The decline reflects changing investor sentiment, profit-taking activity, and a reassessment of global economic and inflation risks.
Market analysts said investors have increasingly shifted toward alternative assets amid easing concerns over supply disruptions and improving confidence in broader financial markets. These developments have reduced demand for traditional safe-haven investments such as gold.
The latest downturn is particularly notable because it has occurred despite ongoing geopolitical tensions in the Middle East, which typically boost demand for gold as a store of value during periods of uncertainty. Analysts observed that broader market forces and portfolio repositioning have outweighed geopolitical considerations in recent trading sessions.
Gold’s weakness has also coincided with a decline in international crude oil prices. Benchmark Brent crude has fallen below $73 per barrel, a development that ordinarily supports bullion prices by strengthening expectations of lower inflation and potentially more accommodative monetary policies.
However, traders noted that the current market environment remains dominated by shifting expectations regarding economic growth, interest rates, and global investment flows, limiting the positive impact that lower oil prices might otherwise have had on gold.
Looking ahead, investors will closely watch upcoming economic indicators, inflation data, and signals from major central banks for clues about the future direction of precious metals markets. Any changes in interest rate expectations, global growth forecasts, or geopolitical developments could trigger renewed volatility in gold prices.
For consumers, the recent correction may create a favourable opportunity to purchase jewellery and physical gold at lower prices. For investors, however, the decline underscores the risks associated with short-term market fluctuations and highlights the importance of monitoring global economic trends that continue to shape bullion markets.
With international gold prices under pressure and local markets set to reopen after the Ashura holidays, traders will be watching closely to determine whether the current downturn represents a temporary correction or the beginning of a more prolonged decline in precious metal prices.
