Gold prices in Pakistan saw a decline of Rs2,400 per tola (11.7 grams), bringing the rate down to Rs306,300 on Wednesday, as per data from the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA). Meanwhile, silver prices also decreased by Rs36, settling at Rs3,314 per tola.
For 10 grams of gold, the price dropped by Rs2,058, reaching Rs262,602, while the same quantity of silver declined by Rs31, bringing its rate to Rs2,841.
Global Market Trends
In the international market, gold prices remained stable after a 2% decline in the previous session, with investors closely monitoring US President Donald Trump’s tariff policies, which have sparked concerns about a potential trade war.
As of 1120 GMT, spot gold was trading at $2,912.69 per ounce, showing minimal change after hitting a one-week low on Tuesday.
Earlier this week, gold had reached a record high of $2,956.15 on Monday, driven by fears that Trump’s trade policies—considered inflationary—could lead to conflicts with global trade partners.
Rising Global Demand for Gold
According to the World Gold Council (WGC), global gold demand—including over-the-counter (OTC) trading—increased by 1% in 2024, reaching a record 4,974.5 metric tons, as investment in the precious metal surged.
Central banks played a key role in this demand, purchasing over 1,000 tons of gold for the third consecutive year.
The final quarter of 2024, following Trump’s election victory, saw a 54% year-on-year increase in central bank gold purchases, reaching 333 tons, based on reported data and estimates of unreported transactions.
Excluding OTC trading, total gold demand stood at 4,553.7 tons in 2024, the highest level since 2022, though OTC demand dropped 7% due to a slowdown in the last quarter, as profit-taking offset continuous demand from high-net-worth investors.
Gold jewellery consumption, which represents the largest segment of physical demand, saw an 11% decline in 2024. While mine production remained stable, gold recycling rose by 15%.
The WGC predicts that jewellery demand will remain under pressure in 2025, while gold recycling is expected to increase further due to high prices.
