Gold prices in Pakistan fell sharply on Monday, tracking a global pullback in precious metals. According to the All Pakistan Sarafa Gems and Jewellers Association, the price of 24-karat gold dropped by Rs5,500 per tola to Rs470,162, compared with Rs475,662 in the previous session.
The decline extended to smaller denominations. The price of 10 grams of 24-karat gold fell by Rs4,715 to Rs403,088, while 10 grams of 22-karat gold slid by Rs4,323 to Rs369,510.
International markets reflected a similar trend. Gold prices eased by $55 to $4,478 per ounce, down from $4,533, as traders booked profits after recent record highs.
Silver prices also moved lower. In the local market, silver fell by Rs332 per tola to Rs8,075, while 10 grams declined by Rs284 to Rs6,923. Globally, silver dropped by $3.32 to $76.00 per ounce.
Despite the day’s correction, investors continue to view gold and silver as key safe-haven assets. Heightened geopolitical risks, including conflicts in Ukraine and Gaza, ongoing trade tensions, and uncertainty linked to Donald Trump’s tariff policies, have kept demand elevated.
Read: Precious Metals Shatter Records as Gold Tops $4,500
Market participants also worry about rising public debt in major economies and the risk of overheating in the artificial intelligence sector. These concerns have prompted investors to seek precious metals as portfolio insurance.
John Plassard, an analyst at Cite Gestion Private Bank, stated that metals now serve more as a hedge than as a speculative asset. He noted that investors increasingly treat gold as a hedge against systemic risks rather than a short-term trade.
Dollar Weakness Reshapes Markets
Traditional safe havens such as the US dollar and Treasury bonds have lost some appeal this year. Uncertainty surrounding U.S. fiscal policy and expectations of further Federal Reserve rate cuts have weakened the U.S. dollar, encouraging flows into metals.
Gold has gained more than 70 per cent this year and recently crossed $4,500 an ounce for the first time, while silver has surged to record levels after rising nearly 2.5 times since January.
A softer dollar has also supported industrial metals, as commodities priced in dollars become cheaper for international buyers. Analysts expect volatility to persist as investors balance profit-taking with ongoing demand for safety.
