Gold prices in Pakistan plunged on Wednesday, following global cues, as de-escalation signals from US President Donald Trump over Chinese tariffs sparked speculation of a prolonged market correction.
After hitting record highs in recent sessions, gold prices witnessed a historic intra-day drop, tracking a significant downturn in the international market.
According to the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of gold per tola fell Rs11,700 to Rs352,000. The price of 10 grams of gold also declined Rs10,031 and settled at Rs301,783.
Just a day earlier, on Tuesday, gold had reached an all-time high of Rs363,700 per tola on the back of a single-day surge of Rs5,900.
Internationally, gold prices also registered a notable dip. APSGJA reported that the global rate fell $116 per ounce, reaching $3,338 (inclusive of a $20 premium). Commenting on the development, Abdullah Abdul Razzaq, a member of APSGJA, termed the decline "one of the most significant in recent months," noting that the last comparable drop occurred on November 12, 2024, when prices fell $77 and Rs7,000 in a single day.
Adnan Agar, Director at Interactive Commodities, attributed the correction to geopolitical developments, particularly signs of easing trade tensions between the United States and China. "The market hit a low of $3,172 today (Wednesday) before recovering slightly to $3,288. Over the past two days, gold has fallen nearly $230," he noted.
Agar added that further downside may be possible, with prices potentially adjusting to the $3,250-$3,220 range. "With de-escalation signals from US President Donald Trump regarding Chinese tariffs, market sentiment is shifting. If negotiations gain momentum, a long-awaited correction in gold could extend over several months."
The recent movements highlight the volatility in global bullion markets, especially in response to geopolitical cues, with local prices reflecting these trends sharply.
Meanwhile, the Pakistani rupee slipped marginally against the US dollar on Wednesday to close at Rs280.97 in the inter-bank market compared to Rs280.77 a day earlier, according to the State Bank of Pakistan (SBP).
This marks a depreciation of 20 paisa, or 0.07%, in the local currency, reflecting minor pressure in the foreign exchange market. Analysts suggest that the movement remains within a narrow range, driven by routine demand and supply factors.
The SBP reiterated that the rupee depreciates when more rupees are required to purchase one US dollar, and conversely, it appreciates when fewer rupees are needed. Moreover, the inflow of remittances under the Roshan Digital Account (RDA) rose to $10.003 billion by the end of March 2025 as compared to $9.768 billion by the end of February, according to APP.
Data showed that the inflows of remittances during March were recorded at $235 million as compared to $204 million in February and $222 million in January 2025, according to the latest statistics released by the State Bank of Pakistan (SBP).
These accounts provide innovative banking solutions to millions of non-resident Pakistanis (NRPs), including the non-resident Pakistan-origin card (POC) holders, seeking to undertake banking, payment, and investment activities in Pakistan.
The number of accounts registered under the programme rose 53,092 to 805,442 in March 2025 from 797,350 accounts in February 2025.
By the end of March, overseas Pakistanis invested $460 million in Naya Pakistan Certificates, $883 million in Naya Pakistan Islamic Certificates, and $62 million in Roshan Equity Investment.
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