Gold Prices in Pakistan Rise Sharply After a Major Drop — Market Rebounds Strongly

Gold prices in Pakistan have made a strong comeback after a steep decline just a day earlier. On Wednesday, local markets witnessed a sharp increase in gold rates, mirroring the upward movement seen in international markets.

According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of gold per tola rose by Rs. 3,500, reaching Rs. 419,862. Similarly, the 10-gram gold rate climbed by Rs. 3,000, settling at Rs. 359,963.

This sudden rebound comes right after Tuesday’s dramatic drop, when the per tola price fell by Rs. 14,000, closing at Rs. 416,362.

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Global Gold Market Trends

Internationally, gold prices also showed positive momentum. The global rate stood at $3,975 per ounce (including a $20 premium), marking a $35 gain compared to the previous session.

Experts believe that the global uptick in gold prices is linked to investor optimism ahead of an anticipated interest rate cut by the US Federal Reserve. Lower interest rates generally make gold a more attractive investment option, as they reduce the opportunity cost of holding non-yielding assets like gold.

At 0257 GMT, spot gold increased by 0.2%, trading at $3,957.42 per ounce, while US gold futures for December delivery slightly dipped by 0.3% to $3,971.20 per ounce.

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Why Gold Prices in Pakistan Fluctuate So Often

Gold prices in Pakistan are heavily influenced by international market movements, currency exchange rates, and local demand. Because Pakistan imports most of its gold, the value of the Pakistani Rupee against the US Dollar plays a key role in determining local gold rates.

A stronger rupee often brings down the price of gold domestically, while a weaker rupee makes gold more expensive for buyers. Moreover, fluctuations in global inflation, geopolitical tensions, and interest rate policies from major economies like the US and China can all have a direct effect on gold’s global demand.

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Local Market and Investor Reactions

The sudden rise in gold prices in Pakistan has brought mixed reactions. For investors and traders, this increase is a positive sign, showing that the market remains resilient despite volatility. However, for consumers especially those planning weddings or purchasing jewelry this rise adds pressure on already stretched household budgets.

Jewellers across Karachi, Lahore, and Islamabad have reported moderate buying activity after the recovery, as many buyers are still waiting for prices to stabilize before making major purchases.

Meanwhile, the silver price per tola also witnessed an upward movement, increasing by Rs. 110 to reach Rs. 5,034 in the local market.

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The Connection Between Gold and the Pakistani Rupee

The recent strengthening of the Pakistani Rupee against the US Dollar also plays a crucial role in market sentiment. The local currency recently reached a six-month high, which contributed to stability in bullion prices.

A stronger rupee often reduces the import cost of gold, but global market forces can override these benefits, as seen in the recent increase. Analysts believe that if the rupee continues to hold its ground, it could help limit future gold price surges in the domestic market.

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What to Expect in the Coming Days

Financial analysts expect gold prices to remain volatile in the short term, as the market closely watches the Federal Reserve’s decision on interest rates and ongoing US-China trade negotiations.

If the Federal Reserve confirms a rate cut, gold could continue its upward trend globally, which would likely impact gold prices in Pakistan as well. On the other hand, if global tensions ease and the US dollar strengthens, gold might face downward pressure.

For now, jewellers and investors in Pakistan are keeping a close eye on international developments to gauge the next big move in bullion markets.

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Conclusion

The recent rise in gold prices in Pakistan marks a strong recovery after a sharp fall, reflecting broader global trends and investor sentiment. While this increase brings relief to traders, it also adds challenges for buyers and the jewelry industry.

As global markets remain uncertain, gold continues to be viewed as a safe-haven investment, offering protection against inflation and currency fluctuations. Whether prices will continue to climb or stabilize depends largely on international economic developments and policy decisions in the coming weeks.