KARACHI: Gold prices in the local market continued their downward trend on Wednesday, following a sharp decline in international rates.

The prices of 10 grams and one tola of gold dropped by Rs6,463 and Rs7,538, respectively, settling at Rs374,967 and Rs437,362.

According to the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), global gold prices fell by $85 per ounce to $4,150 on Wednesday. Since last Friday, international prices have declined by $208 per ounce, resulting in a cumulative decrease of Rs19,538 in the domestic one-tola rate.

Despite the decline, demand has remained subdued. All Pakistan Jewellery Manufacturers Association Chairman Mohammad Arshad stated that despite the ongoing wedding season, customers have not returned in significant numbers.

He noted that demand had already begun to taper off when the price of gold crossed Rs400,000 per tola.

“Many people still cannot afford gold despite the recent drop,” he said, adding that it is difficult for consumers to purchase even a single tola jewellery set, which still costs around Rs450,000.

According to Reuters, gold prices fell on Wednesday to a near two-week low, following their sharpest single-day drop in five years in the previous session, as investors booked profits ahead of key US inflation data due this week.

Gold prices have notched multiple record highs and gained 54pc this year, bolstered by geopolitical tensions, economic uncertainty, expectations of US rate cuts and strong inflows into ETFs. Prices fell 5.3pc on Tuesday, after notching a record high of $4,381.21 per ounce in the preceding session.

Friday’s US Consumer Price Index (CPI) report, delayed due to the ongoing US government shutdown, is expected to show that core inflation held at 3.1pc in September.

Arshad said that persistently high bullion prices and weak jewellery demand have impacted manufacturing units, with around 60pc of them struggling to sustain operations. Others have scaled down their workforce due to reduced orders.

He also pointed out that investors, who had earlier purchased gold bars and coins, are now holding off on further buying, adopting a wait-and-see approach. He declined to predict future price movements, stating that much would depend on global factors, including political developments.

Published in Dawn, October 23rd, 2025