Gold prices in Pakistan witnessed a sharp decline on October 28, 2025, marking the biggest single-day drop in several years. The sudden fall follows a global downward trend in bullion markets as the US dollar strengthened and international spot gold rates tumbled.
Massive Price Reduction in Local Market
According to data from local jewellers, the price of 24-karat gold per tola fell by Rs 4,800, settling at Rs 229,200, down from Rs 234,000 recorded a day earlier. Similarly, the 10-gram rate dropped by Rs 4,115 to Rs 196,500.
Market analysts attribute this steep fall to declining global gold demand and a stronger Pakistani rupee against the US dollar, which has eased import pressures on precious metals.
Global Market Influence
In the international market, gold prices fell to $2,285 per ounce, down nearly $40 in a single session. The drop comes amid renewed optimism in global equity markets and easing geopolitical tensions that have reduced safe-haven buying.
Analysts note that investors are shifting funds toward riskier assets as expectations grow that major central banks may delay further interest rate cuts.
Currency Stability and Local Demand
Currency traders said the PKR’s recent recovery against the dollar contributed to easing gold prices in the domestic market. With the rupee stabilizing and inflation slightly cooling, jewellers report a temporary slowdown in retail gold demand.
However, experts believe prices could fluctuate in the coming weeks depending on international market movement and the dollar’s trajectory.
Traders’ Viewpoint
A bullion trader in Karachi stated, “This is the steepest single-day drop we’ve seen in years. Buyers are holding off purchases, expecting prices might decline further before stabilizing.”
Recent Volatility in Precious Metals
Gold had reached a record high earlier this month amid political uncertainty and high inflation expectations. The sudden correction now reflects a global recalibration, with investors balancing between risk assets and traditional hedges like gold.
Conclusion
The significant decline in gold prices offers some relief to potential buyers but raises concerns for investors holding the metal as a hedge. Market watchers expect short-term volatility to persist as both local and global factors continue to influence bullion trends.
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