Gold prices ease despite recent highs in Pakistan

KARACHI: Gold prices in Pakistan witnessed a significant drop on Saturday, reflecting a downturn in the international bullion market. The price of gold per tola fell by Rs4,700, bringing gold prices down to Rs455,562.

Similarly, gold prices for 10 grams declined by Rs4,030 to settle at Rs390,570, according to market sources. The latest decrease marks one of the notable single-day corrections in local gold prices in recent weeks.

The decline in domestic gold prices followed a major slide in the global market, where the price of gold dropped by $47 to reach $4,332 per ounce. International trends continue to play a key role in determining gold prices in Pakistan.

Meanwhile, silver prices also recorded a decrease. The price of silver per tola fell by Rs106 and is now being traded at Rs7,756.

Market analysts say volatility in global commodities and currency movements are influencing gold prices, while investors remain cautious amid changing economic signals.

Gold Prices Outlook for 2026

The year 2025 marked a pivotal shift in the global valuation of gold, transforming the metal from a purely cyclical inflation hedge into a strategic, non-sovereign reserve asset.

Gold prices surged dramatically, delivering year-to-date (YTD) gains that varied across reporting periods, ranging from a strong +17.4% through November to an even more significant increase of over +50% for the year 2025 in some analyses.

This rally culminated in gold setting a record high, peaking near $4,381 per ounce in mid-October, 2025.

The ascent was not merely a reaction to inflationary pressures but rather a structural repricing driven by systemic geopolitical and financial risks.

The dominant factors underpinning this movement were unprecedented Central Bank accumulation, reflecting broader de-dollarization strategies, robust Exchange-Traded Fund (ETF) inflows, and a sustained risk premium derived from persistent global political instability.

Looking ahead, the institutional consensus for 2026 remains decidedly bullish. The forecast hinges on the anticipated easing of US monetary policy by the Federal Reserve and growing global anxiety regarding the long-term sustainability of the US fiscal outlook. Major financial institutions, including UBS and Goldman Sachs, project gold targets reaching between $4,400 and $4,900 per ounce.