Gold prices in Pakistan fall sharply again

May 3, 2025 – The price of gold continues to drop in both Pakistan and the international market, bringing some relief to potential buyers and investors.

According to the All Pakistan Sarafa Gems and Jewellers Association, the price of 24-karat gold per tola fell sharply by Rs2,300, settling at Rs342,200 on Saturday. This marks a significant decline in the domestic gold market.

Similarly, the price of 10 grams of 24-karat gold also dropped by Rs1,972, bringing the new rate to Rs293,381.

International Market Trends

The global gold market mirrored this trend. The price of gold per ounce saw a decline of $23, pushing the international rate down to $3,240 per ounce. Experts believe that market fluctuations, interest rate expectations, and a strong dollar may be contributing to the drop in gold prices globally.

Silver Prices Also Drop

The silver market in Pakistan also faced a downward shift. The price of a tola of 24-karat silver dropped by Rs45, bringing it to Rs3,382. Additionally, the price for 10 grams of silver decreased to Rs2,899.

Market Reactions

Jewelers and gold traders say that the drop in prices could encourage more buying in the coming days, especially ahead of wedding seasons or festivals. However, investors may take a cautious approach due to ongoing volatility in the global financial markets.

Economic analysts also highlight that changes in global inflation, interest rates, and currency fluctuations are all key factors impacting both gold and silver prices. As gold is traditionally seen as a hedge against inflation, any shift in the economic outlook can have a strong impact on its price.

Traders are keeping a close eye on the U.S. Federal Reserve’s monetary policies, as they are expected to influence the demand and price of gold in the international market in the near future.