Gold prices sharply declined in Pakistan and the international market on April 23, 2025, following a record-breaking rally fueled by geopolitical tensions and safe-haven demand.
According to market data, international gold prices fell by $116 per ounce to $3,338, reversing gains driven by recent uncertainties. In Pakistan, the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA) reported a Rs11,700 per tola drop, bringing 24-karat gold to Rs352,000. The price of 10 grams decreased by Rs 10,031 to Rs 301,783.
Local dealers attributed the decline to increased selling pressure following a period of intense buying, as investors sought to capitalise on the previous surge. Just days earlier, gold had reached a historic high of Rs363,700 per tola, with the price for 10 grams at Rs311,814, reflecting a rise of Rs5,900.
The recent rally was spurred by global factors, including a weaker US dollar and trade tensions, enhancing gold’s appeal as a hedge against currency depreciation. However, the sharp correction suggests investors are locking in profits, as noted by traders in Karachi’s Sarafa Bazar, the hub of Pakistan’s gold trade. Volatility in international markets and local economic pressures like inflation continue to influence pricing.
Historical Context
Gold prices in Pakistan have been volatile in 2025, with a 22.06% increase over the past 30 days and significant yearly gains. For instance, on April 5, prices dropped Rs5,500 per tola to Rs320,000, reflecting international trends. Earlier highs, such as Rs340,600 on April 12, underscore the market’s sensitivity to global shifts.
Read: Gold Hits Record $3,500 as Trade Tensions and Weak Dollar Drive Demand
While the APSGJA’s data is reliable, discrepancies between official and market reports occasionally arise, potentially due to speculative trading in Karachi’s Sarafa Bazar. The rapid price swings highlight gold’s role as a safe-haven asset and expose investors to sudden correction risks. Compared to international standards like the Shanghai Gold Exchange, the lack of transparency in local pricing mechanisms may amplify volatility. Additionally, Pakistan’s reliance on imported gold strains foreign reserves, complicating economic stability.
