Gold prices in Pakistan have witnessed a sharp decline, offering significant relief to prospective buyers while creating concerns among investors and traders. The precious metal’s value dropped substantially as international bullion markets experienced downward pressure, directly affecting local rates across the country.
This marks the second consecutive day of falling gold prices, reflecting increased volatility in both domestic and global markets as we approach 2026.
Current Gold Rates in Pakistan – December 2025
The All Pakistan Sarafa Gems and Jewellers Association has reported the following updated gold prices across major cities including Karachi, Lahore, Islamabad, and Rawalpindi:
Per Tola (11.66 grams): Rs 459,462 (decreased by Rs 10,700)
Per 10 Grams: Rs 393,914 (decreased by Rs 9,174)
This substantial drop follows yesterday’s decline of Rs 5,500 per tola, indicating a continuing downward trend in the precious metals market as 2025 comes to a close.
What’s Behind the Sudden Price Drop?
The primary driver of this decline is the fall in international gold prices. Global bullion markets saw gold prices decrease by $107 per ounce, bringing the international rate down to approximately $4,371 per ounce.
Several factors are contributing to this movement. Traders and investors have been engaging in profit-booking activities after gold reached record-high prices in recent months. Shifting expectations regarding global interest rate policies have also influenced investor sentiment toward gold. Additionally, there has been a temporary reduction in demand for safe-haven assets as market conditions stabilize heading into the new year.
Since Pakistan’s gold market closely mirrors international trends, local prices responded immediately to these global changes.
Silver Prices Also Show Decline
The downward trend isn’t limited to gold alone. Silver prices in Pakistan have also decreased, with per tola rates dropping by Rs 145 to settle at Rs 7,930 in the local market. This reflects broader weakness in precious metals as the year draws to a close.
Gold’s Remarkable Performance Throughout 2025
Despite the recent correction, 2025 has been an extraordinary year for gold investors in Pakistan. The precious metal delivered historic returns that outpaced virtually every other investment option available in the country.
At the beginning of 2025, 10 grams of gold was valued at approximately Rs 233,000. By late December, the same quantity crossed the Rs 400,000 mark, representing an impressive increase of nearly 73 percent over twelve months.
This exceptional performance made gold the best-performing investment asset in Pakistan for 2025, surpassing real estate, stocks, and traditional saving instruments.
International Gold Market Trends
The global gold market has experienced unprecedented growth throughout 2025. International prices surged from around $2,612 per ounce at the end of 2024 to peak above $4,500 per ounce by December 2025.
This represents the highest annual percentage increase since 1979, driven primarily by persistent inflation concerns, geopolitical uncertainties, currency devaluation fears, and central bank gold purchases worldwide.
Analysts attribute this historic rally to multiple factors including economic instability in major economies and investors seeking protection against currency depreciation.
What Does This Mean for 2026?
As we enter 2026, market experts are divided on gold’s future trajectory. Some analysts believe the recent correction offers a strategic entry point for new buyers, while others caution that further volatility is likely in the coming months.
Key factors that will influence gold prices in 2026 include global monetary policy decisions by major central banks, inflation trends in developed and emerging economies, geopolitical developments and regional conflicts, and the strength of the US dollar against other currencies.
The Pakistani rupee’s performance against the dollar will also play a crucial role in determining local gold prices throughout the new year.
Should You Buy Gold Now or Wait?
For buyers planning weddings or jewelry purchases, the current dip may represent a favorable opportunity compared to prices just days ago. However, those considering gold as an investment should carefully evaluate their financial goals and risk tolerance.
Financial advisors suggest that gold should constitute a portion of a diversified investment portfolio rather than being the sole investment vehicle. The recent price drop, while significant, comes after an exceptional year of gains, so timing the market perfectly remains challenging.
Buyers should monitor international trends closely and consider making purchases in phases rather than investing large amounts at once.
Expert Opinions on Market Outlook
Market analysts suggest exercising caution despite the attractive price drop. Gold has historically been cyclical, and after such strong annual gains, some consolidation is natural and expected.
Experts recommend that serious investors watch for stabilization in international prices before making major commitments. The first quarter of 2026 will likely provide clearer signals about the metal’s direction for the year ahead.
Impact on Pakistani Economy
Gold imports significantly affect Pakistan’s trade balance and foreign exchange reserves. Lower gold prices could potentially reduce the import bill if demand increases, though this depends on consumer buying behavior in the coming months.
The jewelry industry, which employs thousands across the country, may see increased activity if prices remain at current levels, potentially boosting economic activity in this sector as we move into 2026.
Conclusion
The Rs 10,700 per tola decrease in gold prices provides a temporary respite for buyers after months of record-breaking highs. While the short-term outlook shows volatility, gold’s exceptional 73 percent annual gain in 2025 demonstrates its continued appeal as a store of value in Pakistan.
As 2026 begins, both buyers and investors should stay informed about global market trends and make decisions based on their individual financial circumstances rather than short-term price movements.
Whether this decline represents a brief correction or the start of a longer trend will become clearer in the weeks ahead. For now, the lower prices offer an opportunity that may not last long given gold’s strong fundamental drivers.
Stay updated with the latest news on gold prices, market trends, and financial updates throughout 2026.