Gold Prices in Pakistan Plummet by Rs11,700
The gold price decrease has been influenced by global market trends, with spot gold trading near $3,336 an ounce. The All Pakistan Sarafa Gems and Jewellers Association's daily price fixation method is under scrutiny, with some calling for a more transparent and uniform system to be implemented.
Gold prices in Pakistan witnessed a significant decline, with the price of gold dropping by Rs11,700 per tola to Rs352,000, and 24-karat gold per 10-gram being sold at Rs301,783 after a decline of Rs10,031.
The decline in gold prices is attributed to increased selling pressure following heightened buying activity, with many investors opting to take profit amid volatile trends. The price of gold had surged to a historic high of Rs363,700 in Pakistan before the decline. Globally, spot gold traded near $3,336 an ounce, down $0.5 or 0.01% from the previous session.
The All Pakistan Sarafa Gems and Jewellers Association (APSGJA) fixes daily gold rates based on interbank rupee-dollar parity. However, traders claim that the rates are not based on trading at the Karachi Bullion Exchange (KBE), which was reopened after a six-month closure to curb Hawala and Hundi activities and speculation. The APSGJA president, Mohammad Qasim Shikarpuri, justifies the daily price fixation method, but some gold jewellers believe that a government regulatory body should be established to fix daily rates and maintain price uniformity.
The gold market is facing a shortage of buyers, resulting in a dearth of buyers for small- to medium-sized gold jewellers, who are struggling to manage their monthly expenses and employees' salaries. Gold prices in Pakistan have surged to record highs, with the 10-gram and one tola gold rates increasing by Rs111,711 and Rs130,300 respectively from January 2024 to April 2025.
The decline in gold prices is expected to have a significant impact on the gold market in Pakistan, with many investors and jewellers closely watching the trends to make informed decisions. The establishment of a government regulatory body to fix daily rates and maintain price uniformity is being considered to bring stability to the market.