KARACHI: After a week of record-breaking highs, gold prices in Pakistan witnessed a sharp plunge on Saturday, sending shockwaves through the bullion market. The price of 10 grams of 24-karat gold dropped by Rs 9,088 to Rs 382,630, while one tola slid by Rs 10,600, settling at Rs 446,300.
The local fall mirrored global trends, as international gold prices dipped by US $106 per ounce, bringing the yellow metal down to around US $4,252. Analysts attribute this sudden correction to the strengthening of the U.S. dollar and easing geopolitical tensions, which prompted investors to move away from safe-haven assets.
Traders in Karachi explained that the surge earlier in the week — when prices climbed over Rs 14,000 per tola — was largely speculative, driven by fears of inflation and currency volatility. However, the recent drop has been linked to profit-taking by investors and a global shift toward risk-based investments.
Market experts believe this correction could offer some relief to local buyers ahead of the wedding season, though they caution that prices may remain unstable in the coming days. “The volatility is unpredictable,” said one jeweller, noting that local prices still depend heavily on the rupee-dollar parity and international bullion trends.
Economists suggest that while the fall might temporarily ease inflationary pressures, it also highlights Pakistan’s deep dependence on imported gold and its vulnerability to global financial fluctuations.
Gold traders and consumers alike are now watching closely to see if the current dip stabilises or triggers another cycle of market swings.
This story has been reported by PakTribune. All rights reserved.