Gold prices in Pakistan plunged sharply on Monday, tracking a significant global decline as market optimism grew following a temporary agreement between the US and China to ease tariffs.
In local markets, the price of gold per tola dropped by Rs10,400, settling at Rs340,500, while the 10-gram rate fell by Rs8,917 to Rs291,923, according to the All Pakistan Sarafa Gems and Jewellers Association (APSGJA).
This marked another major dip after a Rs1,800 fall on Friday, continuing a downward trend that had also seen a Rs1,170 per tola drop on April 23, 2025.
Internationally, gold prices fell over 2% as the safe-haven appeal weakened. Spot gold declined by 2.6% to $3,237.04 an ounce, with US gold futures down 3.1% at $3,241.70.
The precious metal, which had soared to a record $3,500.05 last month amid trade tensions, lost ground after the US and China agreed to suspend 90% of tariffs for 90 days, a move that boosted investor risk appetite.
Adnan Agar, Director at Interactive Commodities, attributed the slide to improved trade sentiment. “Gold opened lower today, marking a low of $3,207 before stabilising around $3,236.
This drop is largely due to progress in US-China negotiations, where both sides agreed to suspend 90% of tariffs for a 90-day period,” he said. He added that gold is now testing key support levels at $3,200 and $3,180, and could slide further if these are breached.
In currency markets, the Pakistani rupee appreciated slightly by 0.05% against the US dollar, closing at 281.57, up by Rs0.14 from the previous session, according to the State Bank of Pakistan (SBP). This followed a 0.23% dip last week when the rupee fell to 281.71 from 281.06.
Meanwhile, Pakistan’s central government debt rose to Rs73.7 trillion in March 2025, reflecting a monthly increase of Rs652 billion (0.9%) and a 12.7% rise over the previous year. Domestic debt climbed to Rs51.5 trillion, up 18.6% year-on-year, driven by a 28.8% jump in federal government bonds, now at Rs39.7 trillion.
Permanent debt reached Rs40.6 trillion, while short-term borrowing dipped 2.3% to Rs7.8 trillion. Unfunded debt slightly decreased, and investments in Naya Pakistan Certificates plummeted by 33.2% year-on-year. External debt edged up to Rs22.2 trillion, reflecting a modest 1% annual increase.