Gold prices drop sharply in Pakistan after recent rally

The price of one tola declining by Rs5,600 to Rs424,136.

KARACHI: Gold prices in Pakistan fell sharply after a sustained upward trend, with the price of one tola declining by Rs5,600 to Rs424,136, according to the All Pakistan Sarafa Gems and Jewelers Association.

The association said the price of 10 grams of gold also dropped by Rs4,801 to Rs363,628. The decline followed a fall in international bullion markets, where gold lost $56 per ounce to trade at $4,017.

Silver prices also moved lower in both domestic and global markets. The price of one tola of silver fell by Rs50 to Rs6,289, while 10 grams declined by Rs43 to Rs5,391. In the international market, silver was trading at $58.10 per ounce.

Gold is traditionally regarded as a safe-haven investment and often gains value during periods of inflation, economic uncertainty and geopolitical tensions. Investors typically shift toward bullion when confidence in other asset classes weakens.

Pakistan revised its gold pricing mechanism last year, under which local gold prices are calculated at $20 per ounce above the international market rate, a policy that continues to influence domestic bullion prices.