KARACHI: Gold prices in Pakistan recorded another steep correction on Saturday, falling by Rs25,500 per tola as a pullback in international bullion markets triggered heavy selling after weeks of sharp gains.
According to the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of 24-carat gold declined to Rs511,862 per tola. The rate for 10 grams dropped by Rs21,862 to Rs438,839. The fall mirrored a global retreat in bullion prices, where gold slipped by $255 per ounce to $4,895.
Market participants said the correction was driven largely by aggressive profit-taking following the historic rally seen earlier this month, when gold prices surged to unprecedented levels both locally and internationally. Traders noted that the pace of the earlier rise had made the market vulnerable to sudden reversals.
Analysts linked the decline to easing geopolitical fears that had previously fuelled safe-haven demand. In recent sessions, signs of reduced tension between the United States and Iran, including reports of possible diplomatic engagement, helped calm investor nerves. This shift prompted some investors to move funds away from gold into riskier assets.
Another factor weighing on prices was the approaching slowdown in Asian markets. Traders pointed to China’s annual holiday period, during which trading activity typically declines. As one of the world’s largest consumers and traders of gold, reduced participation from China often dampens global momentum and amplifies corrections.
Local prices adjusted swiftly in line with international movements. Dealers explained that gold rates in Pakistan usually carry a premium of around $20 per ounce over global prices to account for exchange rate fluctuations, import costs and domestic market dynamics.
Silver prices also came under pressure, posting heavier losses than gold. The metal fell by Rs2,063 to Rs9,006 per tola, while the 10-gram rate declined by Rs1,768 to Rs7,721. Traders said silver, which had also rallied strongly in recent weeks, was experiencing similar profit-taking.
Despite the correction, analysts stressed that bullion prices remain elevated compared to levels seen at the start of the year, highlighting continued long-term demand amid inflation concerns and currency uncertainty. However, they cautioned that volatility is likely to persist in the near term.
