Gold prices in Pakistan witnessed a notable decline on December 16, 2025, amid fluctuating global markets and domestic economic factors. The fall impacts investors and consumers across key cities, including Karachi, Lahore, and Islamabad.
Overview of Gold Price Drop in Pakistan
On Tuesday, the price of 24-karat gold per 10 grams dropped by approximately PKR 900, settling at PKR 190,200. This decrease follows global trends where gold prices have dipped due to strengthening US dollar and rising bond yields. Local dealers pointed to multiple factors, including changes in import duties and shifts in government tax reforms affecting the jewellery sector.
Key Factors Behind the Price Movement
Experts cite the latest developments in Pakistan’s economy, including cautious investor sentiment influenced by recent tax reforms and the High Court verdict on import tariffs. Additionally, fluctuations in the global market, especially the US Federal Reserve’s recent monetary policy adjustments, have played a crucial role.
An official from the Pakistan Gold Dealers Association commented, “The decline is mainly driven by external factors and domestic regulatory changes. Traders are closely monitoring KP security situations and overall market stability as uncertainty affects buyer confidence.”
Impact on Pakistan’s Economy and Market
The decline in gold prices provides temporary relief to consumers and investors who had been facing high costs amid inflationary pressures. However, jewellery retailers have expressed concerns about demand volatility. Given the vital role of gold trading in Pakistan’s economy, these price shifts are significant for importers and customs authorities.
Market analysts believe the price drop may influence social media trends related to investment, as many Pakistanis turn to precious metals amid fluctuating stock and real estate markets. Aviation news and global diplomacy updates continue to indirectly affect commodity prices, highlighting interconnected economic dynamics.
Latest Updates and Official Statements
The ISPR statement recently touched upon regional stability, indirectly reassuring markets. Meanwhile, the NEPRA decision on energy tariffs has added to the broader economic scenario affecting purchasing power. Financial experts anticipate cautious optimism until more stable tax reforms in Pakistan are implemented.
As of the latest update, gold prices remain under close watch by investors amid ongoing developments in the Pakistan economy and global financial markets.
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