Gold Slides Again in Pakistan Amid Global Precious Metals Slump The bullion market in Pakistan has witnessed an extraordinary “bloodbath” as gold prices continue their sharp downward trajectory. Following a historic rally that saw the precious metal reach record highs just days ago, the local market has been hit by a massive correction, mirroring a significant slump in global precious metal prices.
As of February 25, 2026, gold prices have shed over Rs. 61,000 per tola in just a two-day span, leaving investors and jewelry buyers in a state of shock.
What is the Current Gold Rate in Pakistan Today?
The sudden shift in the global economy has brought the local rates down from their peak. While the market remains highly volatile, the current rates reflect a deep “slump” compared to last week’s highs.
Why Did Gold Prices Crash So Suddenly?
The primary driver behind this “gold crash” is a combination of international political shifts and profit-booking by major investors.
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The “Trump-Fed” Factor: The nomination of Kevin Warsh as the new US Federal Reserve Chair has sent ripples through the market. Known as an “inflation hawk,” Warsh’s potential leadership has strengthened the US Dollar, making gold (which is priced in dollars) more expensive and less attractive for global buyers.
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Panic Profit-Taking: After gold hit a record high near $5,600 per ounce last week, large-scale investors rushed to “lock in” their profits, leading to a massive sell-off.
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Geopolitical De-escalation: Reports of potential diplomatic dialogues between the US and Iran have reduced the “safe-haven” demand that usually keeps gold prices high during times of war or tension.
How Has Silver Responded to This Market Slump?
Silver, often referred to as “poor man’s gold,” has suffered an even more dramatic percentage drop. After touching an all-time peak of $120 per ounce last week, silver prices have dived by nearly 30%.
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Local Silver Rate: One tola of 24K silver in Pakistan has fallen to approximately Rs. 9,006, marking a single-day drop of over Rs. 2,000.
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Global Industrial Impact: The slump in silver is also linked to a cooling off in the high-demand AI and solar sectors, which had previously driven prices to unsustainable levels.
Is This a Good Time to Buy Jewelry or Invest?
Market analysts are currently divided. While the drop of over Rs. 61,000 per tola makes gold more “affordable” than it was last week, it still remains out of reach for many.
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For Jewelry Buyers: Despite the dip, prices are still above the Rs. 500,000 mark. Families waiting for wedding season may find this a better window than last week, but volatility suggests waiting for the market to “settle.”
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For Investors: Adnan Agar, Director at Interactive Commodities, warns that the market has entered a “dangerous bubble phase.” Investors are advised to watch the $4,900 per ounce support level in the international market; if it breaks below that, further slides are expected.
What Determines the Gold Rate in Pakistan?
If you are tracking the rates, remember that local prices are a “cocktail” of three main factors:
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International Spot Price: Calculated in USD per ounce.
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USD to PKR Exchange Rate: A stronger rupee helps bring gold prices down locally.
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Local Demand & Supply: During wedding seasons or high inflation, local premiums often rise regardless of global trends.
Investor Tip: Always verify the “Sarafa Association” rates before making a purchase. In highly volatile markets like February 2026, some retailers may charge a higher “unofficial” rate than the official quotation.