Pakistan’s gold market experienced a significant downturn on Saturday, January 31, 2026, with the price per tola dropping by Rs25,500 to Rs511,862, according to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA).
This decline mirrored a sharp fall in international gold rates, which decreased by $255 to $4,895 per ounce, including a $20 premium. The 10-gram gold price also fell by Rs21,862, settling at Rs438,839.e14373 Silver prices weren’t spared, dropping by Rs2,063 to Rs9,006 per tola.
This comes after Friday’s even larger drop of Rs35,500 per tola, marking one of the steepest corrections in recent history.
Global Triggers Behind the Decline
The international bullion market saw panic profit-taking as gold and silver retreated from record highs earlier in the week. Analysts point to a strengthening US dollar and rising bond yields as key factors. US President Donald Trump’s appointment of Kevin Warsh as the next Federal Reserve Chair sparked market reactions, reducing expectations for aggressive interest rate cuts. Investors shifted toward riskier assets, exacerbating the sell-off.
In global terms, Comex gold futures fell sharply, influencing local prices in Pakistan. This volatility reflects broader economic uncertainties, including geopolitical tensions and currency fluctuations.
Impact on Local Economy and Investors
In Karachi and other major cities, jewelers reported slower demand as buyers held off amid the price correction. For investors, this drop presents both risks and opportunities, with some locking in gains from previous highs. Wedding season shoppers might benefit from lower rates, but long-term holders face losses if prices don’t rebound soon.
Experts advise monitoring US Fed policies and dollar movements for future trends. The analysts warn of continued volatility in the coming weeks.
Overall, this event underscores gold’s role as a safe-haven asset prone to sudden shifts in global sentiment.