Gold Prices Drop Further in Pakistan November 2025 Update

Gold Prices Drop Further in Pakistan on Tuesday, November 4, 2025, as international markets faced pressure from a stronger U.S. dollar and waning hopes of another Federal Reserve rate cut According to the All-Pakistan Gems and Jewelers Sarafa Association (APGJSA), the price of 24-karat gold dropped by Rs. 3,500 per tola, settling at Rs. 420,362, marking one of the biggest daily declines in recent weeks.

Gold Prices Drop Further in Pakistan November 2025

The gold market in Pakistan has been experiencing fluctuations due to volatility in global bullion prices and currency exchange movements.

As per APGJSA data:

• The price of 24-karat gold per tola fell to Rs. 420,362, down Rs. 3,500 from the previous day.
• The 24-karat gold per 10 grams dropped by Rs. 3,001, reaching Rs. 360,392.
• 22-karat gold was quoted at Rs. 330,263 per 10 grams, reflecting the same downward trend.

This latest decline follows a series of marginal dips over the past week, signaling an adjustment phase in both domestic and international bullion markets.

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Reasons Behind the Drop in Gold Prices

Experts attribute the recent fall in gold prices to multiple global and local factors:

1️⃣ Strengthening U.S. Dollar:
The U.S. dollar has reached a three-month high, reducing the appeal of gold as a safe-haven investment. When the dollar strengthens, gold becomes more expensive for investors holding other currencies.

2️⃣ Diminished Hopes of Rate Cuts:
Expectations for another Federal Reserve rate cut in December have weakened, causing investors to pull back from gold and shift funds toward interest-bearing assets.

3️⃣ Global Market Correction:
After a long rally in gold prices over the past two months, the market is now undergoing a correction phase as traders take profits.

4️⃣ Stable Domestic Currency:
The Pakistani rupee’s recent stability against the U.S. dollar has also contributed to reduced local gold prices.

These combined factors have led to a temporary bearish sentiment in the gold market.

Silver Prices Also See a Decline

Following the gold trend, silver prices also dropped in the local market.
According to the latest APGJSA update:

• 24-karat silver per tola is now priced at Rs. 5,022, down Rs. 130.
• 24-karat silver per 10 grams fell by Rs. 112, settling at Rs. 4,305.

While silver’s decline is less steep than gold, analysts note that both metals often move together due to shared investor demand patterns in the precious metals market.

Global Gold Price Trends

In the international market, spot gold traded around $3,986 per ounce, down $11.2 (0.28%) from the previous session.
The drop came as the U.S. dollar index hovered near a three-month peak and U.S. Treasury yields gained strength.

Market analysts expect continued volatility in global gold prices over the coming weeks due to uncertainty surrounding:

• U.S. economic growth forecasts.
• Geopolitical tensions in the Middle East.
• Oil price fluctuations influencing inflation expectations.

Despite the short-term decline, many global traders remain optimistic about medium-term gains, as central banks continue to buy gold as a hedge against currency risk.

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City-Wise Gold Rates in Pakistan (November 4, 2025)

(Rates vary slightly depending on local jeweler associations.)

How the Global Economy Affects Gold Prices

The relationship between gold prices and the global economy remains strong.

When the U.S. economy strengthens and the dollar appreciates, gold tends to fall as investors seek higher returns in equities and bonds.
Conversely, during economic slowdowns or financial crises, investors turn to gold as a safe-haven asset.

Currently, with interest rates staying high and inflation easing in key economies, investors are less motivated to hold gold for short-term gains.

Gold as a Safe-Haven Investment in Pakistan

In Pakistan, gold remains a traditional investment and a symbol of wealth and security, especially for households.
Even when international prices dip, domestic demand often stays stable due to:

• Wedding season purchases.
• Hedging against inflation and currency depreciation.
• Long-term saving habits among families.

However, the recent Rs. 3,500 drop per tola offers a buying opportunity for investors and jewelers who anticipate prices may recover in the coming months.

Expert Opinions on Market Outlook

Market experts predict that gold prices in Pakistan may remain under pressure in the short term but could rebound before the year-end.

According to a leading Karachi-based gold analyst:

“We expect some price recovery in December as the global economy stabilizes and demand increases in Asia, particularly India and China during their wedding and festival seasons.”

Another analyst added that any geopolitical event or Fed policy change could quickly push prices upward again, given gold’s sensitivity to global uncertainty.

Impact on Local Jewelry Market

The fall in gold prices has brought temporary relief to jewelers who struggled with declining sales due to record-high rates earlier this year.
Shops in Karachi’s Sarafa Bazaar and Lahore’s Liberty Market reported increased customer footfall as prices eased.

Jewelers noted that consumers who postponed purchases in October are now returning to the market.
However, they also warn that if prices rebound quickly, demand could once again drop sharply.

Comparison with Regional Gold Markets

Gold prices in Pakistan closely follow those of India, Dubai, and Singapore, where bullion markets are globally connected.

These regional shifts show that the decline in gold prices is global, not limited to Pakistan’s domestic market.

Investor Strategy: Buy, Hold, or Wait?

Financial experts advise investors to adopt a cautious approach in the current market.
While lower prices are attractive, traders suggest monitoring global cues closely.

Key recommendations:

• Short-term buyers: Purchase small quantities during dips for quick gains.
• Long-term investors: Continue accumulating gold gradually for portfolio diversification.
• Jewelry buyers: This is a good time for wedding-season purchases, as prices are unlikely to remain low for long.

Global Gold Price Forecast 2026

Analysts at major financial institutions, including JP Morgan and Goldman Sachs, forecast that gold may average around $4,100–$4,200 per ounce in 2026, depending on inflation and interest-rate movements.

If the Federal Reserve starts easing policy or inflation rises, gold prices could see another rally, possibly testing new record highs.

Pakistan’s Gold Reserves and Market Sentiment

The recent discovery of gold reserves worth $636 billion in Tarbela, announced by Hanif Gohar, has further fueled discussions about Pakistan’s natural resource potential.
While this discovery doesn’t directly impact gold prices, it strengthens market sentiment and investor confidence in the country’s long-term resource outlook.

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Conclusion About Gold Prices Drop in Pakistan November 2025

The drop in gold prices across Pakistan marks a significant shift after months of sustained highs.
With 24-karat gold at Rs. 420,362 per tola and global prices nearing $3,986 per ounce, the market appears to be in a temporary correction phase.

While short-term declines are expected, long-term investors continue to view gold as a safe-haven asset, especially amid economic and political uncertainties.
Experts recommend keeping an eye on U.S. dollar trends, Fed rate decisions, and local rupee movements to anticipate the next major price swing.