Gold Rate in Pakistan 5 May 2025

Gold prices in Pakistan continued their downward trend this week, mirroring a decline in the international market. The drop comes as global gold rates face pressure from a stronger US dollar and shifting investor sentiment. 

Local Market Reacts to Global Trends

Following the global dip, domestic gold prices also dropped. The price of 24-karat gold per tola declined by Rs2,300, settling at Rs342,200. Similarly, the price of 10 grams of gold dropped by Rs1,972 to Rs293,381. The decrease follows a slump in international markets, where gold fell below $2,300 per ounce amid expectations of prolonged high interest rates in the US.

Currency fluctuations also played a role, with the Pakistani rupee showing slight stability against the US dollar. However, gold traders remain cautious, as further global dips could lead to additional corrections in local prices.

Why Are Gold Prices Falling?

If the dollar increases, gold automatically becomes more expensive for buyers across the globe. 

Higher interest rates reduce the attractiveness of gold since it is likely to be considered a safe-haven investment. 

Profit-taking from investors is fueling downward pressure as traders cash in on the recent rally.

What Should Buyers and Investors Do Now?

Market analysts say that short-term volatility may be expected for gold, but it continues to remain one of the most important hedges against inflation and economic uncertainties.

• For buyers: Taking advantage of this dip could be a good idea for wedding season purchases and long-term investments.
• For investors: Keeping an eye on US Fed policy and trends in the currency market will be key in predicting price movements going forward.

What This Means for the Buyers and the Investors

For that matter, planning ceremonies and looking ahead to acquisitions of jewelry, this dip offers a short, acute opportunity to buy. But then again, all bullion experts caution buyers against taking gold at any time, as it is really very sensitive to the global economy.

“In fact, Gold could be making another quick rebound should inflationary threats or geopolitical fears come up,” said Malik Aslam, a commodity trader in Karachi. “Investors should closely watch the dollar index and the Fed’s policy.”