Local gold rates drop as global markets snap three-day rally

Local gold rates fell on Thursday, weighed down by profit-taking in global markets, according to data from the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA).

The per tola (11.7 grammes) price dropped by Rs3,000 to settle at Rs304,000, while the 10-gramme rate slid Rs2,571 to Rs260,630. Meanwhile, 22-karat gold lost Rs2,359 to end at Rs238,919 per 10 grammes.

As per the data shared by APGJSA, the decline came as international gold prices slipped by $28 to $2,893 per ounce, weighed down by a stronger dollar and shifting investor sentiment.

Silver, however, remained unchanged, with per tola prices steady at Rs3,369 and 10-gramme rates at Rs2,888.

International bullion prices fell about 1% on Thursday as investors booked profits following a three-day rally, with markets eyeing US jobs data for clues on the Federal Reserve's rate path amid rising global trade tensions.

Spot gold , which dipped 0.5% to $2,904.51 an ounce as of 1211 GMT, has gained over 10% year-to-date. It hit a record high of $2,956.15 on February 24.

Market focus is pinned on an escalating global trade war after the U.S. imposed 25% tariffs on imports from Mexico and Canada on Tuesday along with fresh duties on Chinese goods.

As central banks ramped up gold purchases in the fourth quarter, overall demand — including over-the-counter (OTC) trading — rose by 1% in 2024, reaching a record high of 4,974.5 metric tonnes amid increased investment.

According to the World Gold Council (WGC), central banks, a major source of gold demand, bought more than 1,000 tonnes of the metal for the third year in a row in 2024.

In the final quarter of 2024, when Trump won the US election, buying by central banks accelerated by 54% year on year to 333 tonnes, the WGC calculated, based on reported purchases and an estimate of unreported buying.

Total gold demand, excluding opaque OTC trading, rose 1% to 4,553.7 tonnes last year, the highest since 2022, the WGC said. It estimates that OTC demand fell 7% due to a slump in the final quarter of the year as profit-taking offset persistent demand from high-net-worth investors.

Gold jewellery consumption, the biggest category of physical demand, fell 11% in 2024, while mine production was steady and recycling rose 15%.

The WGC expects jewellery demand to remain under pressure and recycling to rise further this year due to high prices.