Gold Price in Pakistan Falls by Rs2,700 Per Tola

KARACHI: Gold prices in Pakistan moved lower on Monday, September 21, as the domestic market followed a decline in international bullion prices. The price of 24-karat gold dropped by Rs2,700 per tola, bringing the latest rate to Rs457,536.

The fall comes after a much smaller decline during the previous trading session. Gold had closed at Rs460,236 per tola on Saturday after losing Rs100. The latest movement therefore represents a noticeably larger change in the local market.

The new rates were issued by the All Pakistan Sarafa Gems and Jewellers Association and reflect the latest position of the domestic bullion market. 

24-Karat Gold Rate

The decline was also visible when gold prices were calculated for smaller quantities.

The price of 10 grams of 24-karat gold fell by Rs2,315, taking the rate to Rs392,263. This means buyers looking to purchase gold by weight rather than by tola also faced a lower rate compared with the previous session.

For people purchasing jewellery, however, the final amount paid at a shop can be different from the basic market rate. Jewellery may include additional charges depending on the item, design and workmanship. The daily bullion rate provides the underlying value of the gold, while other costs can be added when a finished jewellery item is purchased.

The price movement is therefore particularly relevant for customers who are comparing rates before making a purchase. 

22-Karat Gold Also Declines

The lower trend was not limited to 24-karat gold.

The price of 10 grams of 22-karat gold decreased by Rs2,122, settling at Rs359,587 on Monday.

Different karat levels have different gold content, which is why their prices are not the same. Twenty-four-karat gold has a higher level of purity, while 22-karat gold contains a smaller proportion of other metals.

For consumers, the choice between the two often depends on what they are buying. Jewellery is commonly made using gold alloys because other metals can provide additional strength and durability.

With both 24-karat and 22-karat rates declining on Monday, the movement was reflected across the main gold rates being tracked in the local market. 

International Gold Prices Move Lower

The decline in Pakistan also came as gold prices weakened in the international market.

The international gold rate fell by $27 to $4,350 per ounce on Monday. Movements in the global bullion market are closely watched in Pakistan because changes in international prices can influence domestic gold rates.

Global investors have been monitoring expectations around US interest rates and movements in the US dollar. A stronger dollar can put pressure on gold because the metal becomes relatively more expensive for buyers using other currencies.

On Monday, international gold was trading lower as expectations of further monetary tightening supported the US currency. Spot gold was reported around $4,350 per ounce during US trading, while the dollar had strengthened against a basket of major currencies. 

These international developments provide part of the background to Monday's decline in Pakistan, although domestic gold prices can also be affected by local market conditions and currency movements.

Silver Prices Stay Unchanged

While gold prices declined, silver remained stable in Pakistan.

The price of silver stood at Rs7,100 per tola, unchanged from the previous rate. The price of 10 grams of silver also remained at Rs6,087.

There was no change in the reported international silver price either. It remained at $66.22 per ounce according to the latest rates issued by the jewellery association.

The difference between the two metals meant that Monday's movement was mainly seen in gold, while silver prices remained steady in both the local and international rate information released for the day. 

How Much Did Gold Fall?

Looking at the latest figures, the change in gold prices can be summarised simply.

The 24-karat gold rate fell Rs2,700 per tola, while the 10-gram rate declined by Rs2,315. For 22-karat gold, the 10-gram price decreased by Rs2,122.

The move follows Saturday's smaller decline of Rs100 per tola. Gold therefore entered the new business week at a considerably lower rate than its previous closing level.

For anyone following gold as an investment or considering a jewellery purchase, daily changes are important because even a few thousand rupees can make a noticeable difference when buying larger quantities.

At the same time, one day's movement does not necessarily indicate where prices will go next. International markets can change quickly in response to economic data, central-bank decisions, currency movements and investor activity.

Current Gold and Silver Rates

As of Monday, September 21, the main rates reported for Pakistan are:

• 24K gold: Rs457,536 per tola

• 24K gold: Rs392,263 per 10 grams

• 22K gold: Rs359,587 per 10 grams

• Silver: Rs7,100 per tola

• Silver: Rs6,087 per 10 grams

• International gold: $4,350 per ounce

• International silver: $66.22 per ounce

The latest figures show a clear contrast between the two major precious metals. Gold recorded a significant decline during Monday's session, while silver remained unchanged.

For Pakistani buyers and sellers, the next movement will depend on developments in the international bullion market as well as conditions in the domestic market. 

What to Watch Next

Gold prices will continue to be closely watched in the coming sessions, particularly because global markets are responding to changing expectations about interest rates and the strength of the US dollar.

For local consumers, the daily rate remains the key reference point when checking the cost of gold. However, anyone buying jewellery should also consider the additional charges applied by the seller rather than comparing only the headline bullion rate.

For now, Monday's market has left 24-karat gold at Rs457,536 per tola, after a Rs2,700 decline, while silver has held steady at Rs7,100 per tola.