Gold prices in Pakistan experienced a steep decline on Monday, mirroring global trends after a temporary tariff deal between the US and China eased market fears and revived investor risk appetite.
According to the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of gold per tola dropped by a massive Rs10,400, settling at Rs340,500. Similarly, the 10-gram rate fell by Rs8,917, closing at Rs291,923.
This drop followed a consistent downtrend, with gold already falling Rs1,800 per tola on Friday and Rs1,170 per tola on April 23, 2025.
Global Gold Slips Over 2%
In international markets, spot gold dropped 2.6% to $3,237.04 an ounce, while US gold futures slipped 3.1% to $3,241.70. This follows gold hitting a record $3,500.05 last month, spurred by geopolitical tensions and tariff concerns.
The drop comes after a temporary 90-day truce between the US and China, suspending 90% of tariffs. The easing tensions weakened gold’s appeal as a safe-haven asset.
Adnan Agar, Director at Interactive Commodities, noted that gold touched a low of $3,207 before stabilizing. He added, “If prices fall below $3,180, we could see further downside. For now, the market remains weak and volatile.”
Rupee Edges Up Slightly
Meanwhile, the Pakistani rupee posted a modest gain against the US dollar, appreciating by 0.05% to close at Rs281.57, according to the State Bank of Pakistan (SBP). This follows a week of volatility where the currency had weakened by Rs0.65.
Pakistan’s Debt Rises to Rs73.7 Trillion
Pakistan’s central government debt rose to Rs73.7 trillion in March 2025, up 0.9% month-on-month and 12.7% year-on-year. Domestic debt stood at Rs51.5 trillion, with federal government bonds surging 28.8% YoY. Short-term and unfunded debt showed a slight decline, while external debt reached Rs22.2 trillion, marking a 1% YoY increase.
With gold prices falling, currency fluctuations ongoing, and debt levels rising, Pakistan’s economy is facing a complex and volatile environment heading into mid-2025.
