ISLAMABAD: Gold prices in Pakistan experienced a modest decline onThursday, mirroring losses in the international bullion market andproviding some relief to buyers after recent volatility. According to theAll-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of24-karat gold per tola fell by Rs600 to settle at Rs466,162. Thisadjustment comes after a similar downward movement the previous day, whenprices dropped by Rs1,200 to Rs466,762. The 10-gram gold rate alsodecreased by Rs515, reaching Rs399,658. Such fluctuations highlight theclose linkage between local and global markets, where even smallinternational shifts prompt immediate responses in Pakistan’s jewellery andinvestment sectors.
The international spot price of gold declined by $6 per ounce during theday, bringing it to $4,438 with a premium of $20. This minor correctionfollows a period of remarkable gains throughout late 2025 and early 2026,when gold repeatedly tested new highs amid persistent economicuncertainties, geopolitical tensions, and expectations of monetary policyadjustments by major central banks. Investors had been drawn to gold as ahedge against inflation and currency fluctuations, pushing prices upwardsignificantly over the past year. The current easing may signalprofit-taking or a temporary pause as markets await fresh economic data.
In Pakistan, gold remains a preferred investment avenue, particularlyduring periods of rupee depreciation and inflationary pressures. The recentdecline arrives after a sharp upward trajectory in the first week ofJanuary 2026, where prices surged by several thousand rupees per tola inresponse to international rallies. For instance, earlier movements sawgains of Rs9,200 per tola on certain days, reflecting strong momentum.However, the latest drop introduces a note of caution for traders andconsumers alike, as sustained high levels had begun to impact demand in thedomestic jewellery market.
Silver prices followed a similar downward path, with the per tola ratedecreasing by Rs236 to Rs8,125. This parallel movement underscores theinterconnected nature of precious metals trading, where silver oftenamplifies gold’s trends due to its dual role in industrial applications andas an investment asset. The reduction in silver comes despite its relativestability in prior sessions, where it occasionally held firmer groundcompared to gold.
Market observers attribute the current softening in gold prices to acombination of factors, including reassessment of global economicindicators and reduced immediate safe-haven demand. While gold has enjoyedrobust support from central bank purchases and investor inflows in recentmonths, short-term corrections are not uncommon in such elevated priceenvironments. In Pakistan, the exchange rate dynamics with the US dollaralso play a crucial role, as any strengthening of the rupee can exertadditional downward pressure on local gold quotations.
The APGJSA continues to serve as the primary authority for daily rateannouncements, ensuring transparency in a market that influences millionsof households and businesses. Jewellers report mixed sentiments, with someviewing the dip as an opportunity for purchases ahead of potential weddingseasons or investment cycles, while others remain watchful for furtherdeclines. Historically, gold in Pakistan has shown resilience, oftenrecovering swiftly from temporary setbacks when broader bullish trendspersist.
Looking ahead, analysts anticipate that gold could face continuedvolatility in 2026, influenced by interest rate trajectories, inflationdata, and geopolitical developments. Forecasts from internationalinstitutions suggest possible further upside potential later in the year,with some projections eyeing levels above current ranges if supportiveconditions endure. For now, however, the market appears to be consolidatingafter an extraordinary run.
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This latest adjustment in Pakistan’s gold prices serves as a reminder ofthe asset’s sensitivity to external forces, offering both risks andopportunities for participants in the bullion trade.
Source:https://propakistani.pk/2026/01/08/gold-prices-fall-in-pakistan-following-international-trend/
Tags: Pakistan, Gold Prices, APGJSA, International Gold Market
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