On May 12, 2025, gold prices in Pakistan saw a significant decline. The All-Pakistan Gems and Jewellers Sarafa Association (APGJSA) reported a drop of Rs10,400 per tola, bringing the price down to Rs340,500.
The international market mirrored this trend, with gold falling $104 to $3,221 per ounce. This was driven by global demand fluctuations, currency volatility, and investor caution, which impacted both local and global markets.
The APGJSA noted that 10-gram gold prices decreased by Rs8,917 to Rs291,923, following a Rs1,800 per tola drop on Friday, when gold closed at Rs350,900. Silver prices also dipped modestly, shedding Rs17 per tola to Rs3,400. The significant local price correction reflects broader market dynamics, with jewellers citing reduced demand and economic uncertainties as key factors influencing investor sentiment in Pakistan.
Gold Price Global Market Context
Internationally, gold’s $104 decline included a $20 premium, signalling cautious trading amid currency fluctuations and shifting investor confidence, as reported by APGJSA. The global market’s volatility, also affecting silver, aligns with recent trends, such as Friday’s $18 per ounce drop. X posts from market analysts highlighted concerns over speculative trading and geopolitical stabilisation, like the India-Pakistan ceasefire, reducing safe-haven demand for gold.
The price drop impacts Pakistan’s jewellery and investment sectors, where gold is a traditional asset. Jewellers noted that ongoing volatility could deter short-term buyers, though long-term investors may see buying opportunities.
The decline follows a week of market turbulence, with Pakistan’s stock exchange rallying post-ceasefire, suggesting shifting economic priorities. Analysts urge caution, as global demand and currency trends remain unpredictable.
