Gold Prices in Pakistan Drop by Rs1,600

Karachi – 12 February 2025, Gold prices in Pakistan significantly declined on Wednesday after hitting an all-time high in the previous session. The price of one tola gold dropped by Rs.1,600, settling at Rs.301,500, as per the latest figures from the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA). Similarly, the price of 10-gram gold fell by Rs.1,372, bringing it down to Rs.258,487.

This decline comes just a day after gold touched a historic peak of Rs.303,100 per tola, driven by fluctuations in the international market.

Why Did Gold Prices Drop ?

The global gold market experienced a setback as prices dipped to $2,888 per ounce (including a $20 premium), marking a $16 decrease within a day. Experts attribute this decline to cautious investor sentiment following a statement from US Federal Reserve Chair Jerome Powell.

Powell reaffirmed that the US economy remains stable, and the Federal Reserve is not in a rush to cut interest rates unless inflation drops significantly or the job market weakens. This stance has strengthened the US dollar and bond yields, reducing demand for gold, which is considered a safe-haven asset.

Future Outlook for Gold Prices in Pakistan

While the market saw a short-term dip, analysts suggest that gold prices may remain volatile as investors await key US economic data, particularly the upcoming inflation report. Any unexpected movement in inflation trends could trigger further fluctuations in global and local gold rates.

Meanwhile, silver prices in Pakistan remained stable at Rs3,312 per tola, showing no major movement despite shifts in the gold market.

For the latest updates on gold prices, visit GoldRateGuru.pk.