Gold prices in Pakistan fell sharply on October 22, 2025, with one-tola rates losing over Rs 7,000 in a single day. The domestic slide follows a broader global correction in bullion markets and signals a potential turning point for investors and consumers alike.
Recording the Drop: What Changed?
According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price for 24-carat gold per tola moved from about Rs 444,900 down to Rs 437,362, marking a fall of Rs 7,538. Simultaneously, 10 grams of 24-carat gold fell by Rs 6,463, settling at Rs 374,967.
Globally, spot-gold prices fell more than 5 percent in the same window, driven by investor profit-taking and shifting currency dynamics.
Why the Prices Fell — Two Big Drivers
1. Global market dynamics: After hitting historic highs, gold faced headwinds as investors rotated back into risk assets and the US dollar strengthened. Higher bond yields and reduced safe-haven demand amplified the correction.
2. Domestic currency and premium factors: In Pakistan, gold pricing includes an import premium linked to the rupee’s performance. The recent slight easing of the rupee’s decline and lower premiums helped domestic rates adjust downward more sharply.
What the Price Drop Means Locally
Gold holds a unique place in Pakistan — valued as both investment and jewellery. This steep drop has several implications:
- Consumer opportunity: For buyers planning weddings, festivals or jewellery gifting, this drop offers relief and buying leverage.
- Investor rethink: Many small investors use gold as a hedge against inflation. A sudden drop may trigger their decision to hold off or sell.
- Jewellery business impact: Retailers face a choice — pass on the price decline to customers immediately, or hold margins. Their decision will influence demand in the coming weeks.
- Macro-economic signal: A sharp domestic correction may ease pressure on import premiums, benefit the rupee and reduce gold-linked inflation worries.
Voices from the Market
A jeweller in Lahore summarized the mood:
“Boards changed in minutes and clients are asking if now is the time to buy — the sentiment has flipped overnight.”
Market analysts caution that this decline doesn’t guarantee a sustained trend. Many await upcoming global inflation data and central-bank announcements, which will shape gold’s next move both globally and locally.
What to Monitor Next
- Import duty or regulation changes on precious metals.
- Movement in the rupee-dollar exchange rate and gold import premiums.
- Global cues: inflation prints, central-bank signals, and geopolitical developments.
- Domestic demand: weddings, festivals and remittance flows.
- Whether current levels spark fresh buying or extend the correction trend.
The recent drop of over Rs 7,500 in one-tola gold prices in Pakistan is a significant development in a market long dominated by cultural investment patterns and inflation hedging. For consumers, it may represent a buying window; for investors, a moment to reassess; for retailers, a challenge in inventory and pricing.
In a country where gold remains both sentimental and strategic, this correction could set the tone for the rest of 2025. As global and local forces align, how Pakistan’s gold market adapts will be closely watched
