On August 16, 2025, gold prices continued their downward trend, with the international bullion market decreasing by $9 per ounce to $3,335.
The decline impacted Pakistan’s local market, where the price of 24-carat gold per tola dropped by Rs900 to Rs356,200. Similarly, the price for 10 grams of gold decreased by Rs771 to Rs305,384. Silver prices also fell, with the price per tola at Rs4,031 (a decrease of Rs41) and 10 grams at Rs3,455 (a decrease of Rs36).
The Pakistani rupee strengthened for the fourth consecutive week, appreciating by 0.06% day-on-day to close at 282.06 against the US dollar, according to Ismail Iqbal Securities. Although there has been a 1.25% depreciation year-to-date, the rupee has gained 0.60% in FY2025, bolstered by economic reforms and a $7 billion bailout from the IMF. AKD Securities has noted the ongoing upward trend.
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The decline in gold prices is influenced by global market dynamics, as investors await signals from the U.S. Federal Reserve regarding potential rate cuts. The rupee has strengthened, supported by improved foreign exchange reserves, which are projected to reach $15.5 billion by December, indicating economic stability. Nonetheless, gold continues to play a crucial role as a safe-haven asset, especially in light of the inflation challenges faced by Pakistan.
Falling gold prices may create buying opportunities in Pakistan, where gold is an important investment. Additionally, the strengthened rupee boosts purchasing power. However, analysts warn that global volatility could affect future trends, making it crucial to monitor U.S. monetary policy and local reforms, as these factors can influence both the markets and consumer behaviour.
