The gold price decrease continued in Pakistan on Monday, reflecting a broader slump in global markets. The price of 24-karat gold per tola dropped by Rs 2,500 in the local market, settling at Rs 353,000. This significant drop came after a decline of Rs1,500 just a few days earlier on July 4, when the gold rate stood at Rs355,500.
According to the latest figures released by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of 10-gram gold also witnessed a substantial fall. It dropped by Rs 2,143, bringing the rate to Rs 302,640. These back-to-back losses signal growing pressure on gold prices both locally and internationally.
Gold Price Fluctuations in July 2025
The start of July has been unstable for the precious metal in Pakistan. On July 4, the gold price per tola dropped by Rs1,500. This followed a period of relative stability, where prices hovered around record highs due to high demand and uncertain economic conditions. Before the recent drops, gold had surged in June, even reaching highs of around Rs358,000 per tola at one point.
However, the tide has now turned. The two significant reductions this month, Rs 1,500 on July 4 and Rs 2,500 on July 8, indicate a total decrease of Rs 4,000 within just a few days. This is among the steepest weekly losses seen in recent months.
International Market Plays a Key Role
The decline in local gold prices is closely tied to the gold spot rate in the international market. On Monday, the international price of gold fell by $25, reaching $3,310 per ounce. This rate includes a premium of $20, as per APGJSA.
Market analysts attribute this international drop to several global factors. A stronger U.S. dollar, reduced inflation concerns, and expectations of steady interest rates by the U.S. Federal Reserve have collectively dampened investor interest in gold. As a result, prices have slipped globally, dragging down domestic rates as well.
Silver Also Loses Ground
It’s not just gold that has been affected. Silver prices also decreased in the local market. The price per tola of silver declined by Rs30, now standing at Rs3,841. This follows the trend in the international market, where precious metals are seeing a general downturn.
Market Reactions and Buyer Sentiment
Local jewelers and traders are reporting mixed reactions. Some buyers are taking this drop as a buying opportunity, while others are cautious, expecting prices to fall even further. “The current gold price decrease is causing hesitation among regular customers,” said a gold dealer in Lahore. “People are waiting for a clearer trend before making large purchases.”
Traders also mentioned that demand has been lower than usual for July, a month that typically sees moderate wedding-related buying. The uncertain pricing is keeping many potential buyers on the sidelines.
Future Outlook: Will Prices Continue to Fall?
While the recent decline in gold prices is significant, whether this trend will continue depends on global economic signals. If inflation remains under control and the U.S. dollar stays strong, gold may see further declines. On the other hand, any geopolitical tension or signs of economic weakness could cause prices to rebound quickly.
In the short term, analysts expect gold prices in Pakistan to mirror international trends closely. For now, both investors and buyers are closely watching the market, waiting to see where the next move takes them.
