On May 27, 2025, gold prices in Pakistan continued to decline for the second consecutive day, reflecting decreases in the international market. Meanwhile, the Pakistan Stock Exchange (PSX) experienced cautious trading in anticipation of the FY26 budget, with the KSE-100 Index closing slightly higher.
Locally, gold per tola fell by Rs3,600 to Rs347,900, while 10 grams dropped Rs3,086 to Rs298,268. Internationally, spot gold decreased 1.6% to $3,289.93 per ounce, down $36, and U.S. gold futures fell 2.3% to $3,287.80, per Reuters.
Prices of other precious metals also fell, with spot silver decreasing by 1.4% to $32.88, platinum down 1.1% to $1,073.22, and palladium decreasing by 1.3% to $974.50. This international decline, driven by a stronger U.S. dollar and decreased demand for safe-haven assets, affected Pakistan’s import-driven gold market.
PSX KSE-100 Performance
The KSE-100 Index increased by 111.78 points, or 0.09%, reaching 118,332.90. This rise reflects investor caution ahead of the FY26 budget announcement, which has been postponed to June 10 due to ongoing discussions with the IMF. Despite the uncertainty surrounding the budget and a trade deficit of $3.4 billion, there is optimism regarding monetary easing and efforts to resolve circular debt. Energy stocks, such as Pakistan Petroleum, played a significant role in this increase, contributing 246 points to the index. The trading volume was 338 million shares, with a total value of Rs 22.3 billion.
Financial analyst Dr. Bilal Khan from LUMS notes, “Gold’s decline reflects global trends, while PSX’s cautious optimism hinges on budget clarity and IMF conditions.”
Gold’s drop affects investors and jewelers, while PSX’s performance signals economic resilience despite budget delays.
