Gold prices in Pakistan saw a sharp decline on Tuesday, as global markets experienced a dip in precious metal rates.

In the local bullion market, the price of gold fell by Rs1,000 per tola, bringing it to Rs274,700, according to figures released by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA).

Similarly, the price of 10-gram gold dropped by Rs857, now standing at Rs235,511. This decrease comes after a marginal increase of Rs200 per tola on Monday, when gold settled at Rs275,700 per tola.

Globally, gold prices also faced a decline, with rates falling by $9 during the day. According to the APGJSA, the international gold price stood at $2,647 per ounce, including a $20 premium.

Despite the drop in gold prices, the silver market remained stable, with the price of silver holding at Rs3,050 per tola.

Last month, gold prices in Pakistan had surged to a record high of Rs277,000 per tola, as the precious metal saw significant gains due to international market fluctuations.

Gold rate today: Gold prices reached a new peak of Rs 78,300 per 10 gm yesterday, driven by safe-haven buying amidst rising tensions in the Middle East and lower US bond yields.
Market participants anticipate further increases in the price of the precious metal if global geopolitical uncertainties escalate. Compared to Tuesday, prices surged by Rs 1,500 per 10 gm, according to an ET report.
According to Kumar Jain, spokesperson of the India Bullion & Jewellers Association (IBJA), “Zaveri Bazaar is buzzing with activity as there is a surge in gold prices.The footfalls have increased by up to 20% on Wednesday compared to a week ago.”
He mentioned that the Navratri festival, starting on Thursday and lasting until October 12, is considered an auspicious time for purchasing gold. “As there is a possibility of prices further moving northwards, consumers are visiting stores to pre-book gold and take delivery during Navratri,” he added.
The primary reason for consumers buying gold jewelry is the upcoming wedding season, which begins in November and extends until February-March.
The thriving demand has led karigars or goldsmiths to work for 12 hours daily, instead of their usual 8-hour shifts.
Jain commented, “It is the China moment for India. China had been buying gold to hedge against inflation. Now Indians too have turned to the yellow metal.”
Bhargav Vaidya, a gold trade analyst, advised, “Previously, we would suggest that 15% of one’s investment should go to gold. But, now since gold prices have started to give 18-20% return annually, the investment should go up to 25%.”
Colin Shah, MD of Kama Jewelry, attributed the exceptional performance of gold to “the beginning of a rate cut cycle in the US, followed by strong anticipation for further rate cuts in upcoming US Fed meetings.”

Gold prices in Pakistan declined on Saturday in line with their decrease in international rates. In the local market, the price of gold per tola was lessened by Rs700, clocking in at Rs276,000.

Similarly, 10-gram gold was sold at Rs236,625 after it recorded a decrease of Rs601, according to rates shared by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA).

On Friday, gold price had decreased by Rs300 to settle at Rs276,700.

Meanwhile, the international rate of gold reduced on Saturday. As per APGJSA, the rate was at $2,657 per ounce (with a premium of $20), and down by $6 during the day.

Silver prices remained stable at Rs3,050 per tola.

On Thursday, gold prices hit a record high level of Rs277,000 per tola in Pakistan.

Experts have attributed the recent increase in gold prices to global developments, including escalating geopolitical tensions in the Middle East, Fed rate cuts and soaring demand from major markets like China and India.

Gold prices in the international market on Wednesday hit a fresh all-time high amid the Israel-Lebanon conflict, a weaker dollar and a decline in US bond yields. In India, the yellow metal touched a record Rs 76,000 per 10 grams. In the international market, gold prices approached the $2,700-an-ounce level to hit $2,690.

“Gold witnessed an impressive rally on Tuesday, breaking another record high, and Silver wasn’t far behind, hitting its best level in nine weeks. People are rushing to these safe-haven metals as uncertainty continues to hang around. The charts also look bullish, which is why the speculators are jumping in. China also gave the metals a bit of a boost by cutting its key bank rate by 0.5%, which provided a major boost to gold and silver,” Rahul Kalantri, vice-president (commodities), Mehta Equities Ltd.

He added that the Israel-Hezbollah military conflict is heating up rapidly, thus fuelling a safe-haven buying in gold and silver.

Kaynat Chainwala, assistant vice-president (commodity research), Kotak Securities, said, “COMEX gold surged to $2,689.40 per ounce yesterday as a significant drop in US consumer confidence heightened expectations for aggressive interest rate cuts by the Federal Reserve. The US Conference Board’s Consumer Confidence Index fell sharply in September to 98.7, down from 105.6 in August, its largest decline in three years. Concerns over the labor market, combined with lower US Treasury yields and the US dollar nearing a 14-month low, further fueled the rise in gold prices. Additionally, Fed Governor Michelle Bowman highlighted persistent inflation risks and advocated for a cautious approach to rate cuts to avoid reigniting inflation.”

Today, COMEX gold prices reached a record high of $2,694.89 per ounce, and expected to hold gains as the CME FedWatch Tool now indicates a 62.2% chance of a 50 basis point cut in November, up from just 29% a week ago. Ongoing fears of an escalating Israel-Hezbollah conflict are likely to enhance gold’s appeal as a safe-haven asset.” Chainwala added.

ICICI Securities in its note said, “Spot gold prices hit fresh highs amid weakness in the dollar and a decline in US bond yields. Weaker than expected US CB consumer confidence numbers has increased the bets of another 50 bps interest rate cut in November. Further, latest measures form China to support the economy also pushed silver prices higher. Moreover dovish comments from BOJ Governor Ueda has strengthened the bullions as he emphasized to hold rates steady.”

The dollar index remained under pressure amid weaker than expected economic numbers from US. CB consumer confidence hit its lowest since May 2024 to 98.70. Meanwhile, hawkish comments from Fed member Bowman limited its downside, the brokerage firm added.

Pranav Mer, vice-president, EBG (commodity & currency research) at JM Financial Services Ltd, said, “Gold’s bull run continues as prices hit yet another all-time high at 76000 per 10gm on futures and move close to $2700 per ounce overseas. Prices remain supported by a weaker dollar, expectation of more rate cuts from global central banks, safe haven demand, and inflow of ETF funds”.

On chart trend remains positive with support at 74,900/ 74,400. “However, trade cautiously, as we may see some profit-booking,” he added.

Silver Prices

“Silver prices surged past Rs 90,000 in the physical market, reaching Rs 90,324, as per IBJA rates, with Comex Silver surpassing $32, following a sharp rally of 4.25 per cent. In MCX, Silver prices rose by 3.45 per cent yesterday, taking prices above Rs 92,000,” said Jateen Trivedi, vice-president (research analyst- commodity and currency), LKP Securities.

This bullish movement comes amid strong expectations for further US interest rate cuts and China unveiling aggressive stimulus measures. China’s central bank announced its most substantial stimulus since the pandemic, while Fed’s Desk hinted at many more rate cuts over the next year. Traders now see a many more instance of another 50 bps cut by the Federal Reserve in November, further boosting precious metal prices, he added.