On July 7, 2025, gold prices in Pakistan dropped significantly by ₨2,500 per tola to ₨353,000, mirroring a $25 per ounce global decline to $3,310, driven by a stronger U.S. dollar and tariff uncertainties.
The All Pakistan Sarafa Gems and Jewellers Association reported a decrease of ₨2,500 per tola for 24-karat gold, bringing the price down to ₨353,000. Additionally, the price for 10 grams of gold fell by ₨2,143 to ₨302,640. On a global scale, spot gold declined by 0.8% to $3,309.21 per ounce, while U.S. gold futures dropped by 0.7% to $3,318.70. This decline, which marks a one-week low, is attributed to a 1.1% increase in the U.S. dollar index, which reduces gold’s appeal as a safe-haven investment.
WisdomTree’s Nitesh Shah attributed the recent decline to a strong U.S. dollar and favourable economic data, which have lowered expectations for rate cuts by the Federal Reserve. Additionally, uncertainty surrounding President Trump’s August 1 tariff deadline on BRICS nations has created further pressure, with investors waiting for the outcomes of upcoming trade talks. Pakistan’s gold market, which is sensitive to global trends, recorded trading volumes of 1.2 million ounces, indicating a cautious sentiment among traders.
Read: Stocks and Dollar Slump, Gold Soars Amid Renewed Tariff Panic
The recent price drop comes as Pakistan faces an inflation rate of 11.8%, according to the State Bank of Pakistan (SBP). This decline affects 220 million citizens and is significant since gold is a key investment for 30% of households. The decrease follows a surge in the Pakistan Stock Exchange (PSX) to 133,137, which contrasts with the rising trend in global equity markets. This situation highlights the economic volatility, especially with the risks posed by monsoon floods.
