KARACHI: Gold prices in Pakistan recorded a major decline on Monday, September 28, 2026, as a sharp fall in international bullion rates pushed local prices significantly lower.
The price of 24-karat gold fell by Rs12,800 per tola and settled at Rs438,136 in the local market, according to rates released by the All-Pakistan Gems and Jewellers Sarafa Association.
Similarly, the price of 10 grams of 24-karat gold dropped by Rs10,973. After the latest decline, 10 grams of gold reached Rs375,631.
The latest fall came after gold had already declined during the previous trading session.
On Saturday, the price of gold stood at Rs450,936 per tola after falling by Rs2,100 during the day. The latest Rs12,800 reduction has now pushed the precious metal well below the Rs450,000 level.
Meanwhile, 22-karat gold also became cheaper.
According to market data, the price of 10 grams of 22-karat gold fell to around Rs344,340 following the latest movement in the bullion market.
The sharp fall in Pakistan followed a significant decline in international gold prices.
The international rate of gold dropped by $128 per ounce and reached $4,156, according to the rates used by the local bullion association for Monday’s pricing.
However, international spot prices continued to move during trading hours.
Mettis Global reported spot gold trading near $4,146 per ounce later in the session, representing a decline of about $113.7, or 2.67%, compared with the previous session.
The decline in gold came as financial markets reacted to changing expectations surrounding inflation and interest rates in the United States.
Higher crude oil prices increased concerns about inflation and strengthened expectations that the US Federal Reserve could maintain tighter monetary conditions or consider further rate increases. These developments placed additional pressure on gold.
Gold often reacts strongly to changes in US interest-rate expectations.
When investors expect higher interest rates, interest-bearing assets can become more attractive compared with gold, which does not provide regular interest payments.
As a result, changing expectations about monetary policy can quickly influence international bullion prices.
The latest international decline directly affected Pakistan because domestic gold rates generally follow movements in the global bullion market.
However, the rupee-dollar exchange rate, local demand, international premiums and trading conditions can also influence prices in the Pakistani market.
The size of Monday’s fall attracted attention because gold lost more than Rs12,000 per tola in a single session.
For buyers who had delayed jewellery purchases because of recently elevated prices, the latest decline has brought some relief.
However, gold prices remain highly volatile, and rates can change quickly during the day.
Therefore, buyers and investors often check the latest Sarafa market rate before making a major purchase.
Silver prices also recorded a noticeable decline on Monday.
The price of silver fell by Rs325 per tola and reached Rs6,578, according to market data reported by the All-Pakistan Gems and Jewellers Sarafa Association.
Meanwhile, 10 grams of silver became cheaper by Rs279.
Following the decline, the price of 10 grams of silver stood at Rs5,639.
The latest figures show that both major precious metals faced selling pressure during the session.
Gold, however, recorded a much larger movement because of the steep decline in international bullion rates.
Recent trading sessions have already shown considerable volatility in gold prices.
Business Recorder data shows that international gold stood at $4,305 per ounce on September 25 before declining to $4,284 on September 26 and then falling sharply to $4,156 on September 28.
Local gold prices followed a similar direction.
The price reached Rs453,036 per tola on September 25 before falling to Rs450,936 on September 26 and then dropping to Rs438,136 on Monday.
This means gold lost almost Rs15,000 per tola across the latest two reported sessions.
The sharp movement has increased interest among both jewellery buyers and people who hold gold as an investment.
Many Pakistani households traditionally buy gold for weddings, savings and long-term financial security.
Therefore, large changes in gold rates can directly affect household budgets, especially during the wedding season.
A fall of Rs12,800 per tola can significantly reduce the cost of larger jewellery purchases.
However, jewellers may also include making charges and other costs, which means the final retail price of jewellery can differ from the basic bullion rate.
Investors also closely watch gold because people often treat the precious metal as a safe-haven asset during periods of economic or geopolitical uncertainty.
However, safe-haven demand does not prevent short-term declines.
Gold prices can fall when the US dollar strengthens, bond yields rise or investors expect central banks to keep interest rates higher for longer.
In Pakistan, currency movements add another important factor.
A weaker Pakistani rupee can make imported gold more expensive even when international prices remain stable. On the other hand, a stable or stronger rupee can reduce some of the pressure from international bullion prices.
Therefore, local gold prices do not always move by exactly the same percentage as international prices.
Monday’s decline also highlights how quickly precious-metal markets can change.
A person checking the price in the morning may find a different international rate later in the day as global markets continue trading.
Local Sarafa associations normally issue benchmark rates that jewellers and traders use across major Pakistani cities.
However, small differences can appear between shops and cities due to local market conditions, availability and retail margins.
For consumers, the latest drop may create a buying opportunity if they already planned to purchase gold.
Still, short-term price movements remain difficult to predict because international markets continue to react to inflation data, interest-rate expectations, energy prices, geopolitical events and currency movements.
Traders will now closely watch international bullion markets to determine whether gold stabilizes after the latest fall or faces further selling pressure.
Any major change in global rates could quickly affect prices in Karachi, Lahore, Islamabad and other Pakistani markets.
For Monday, September 28, the key official market figure remains Rs438,136 per tola for 24-karat gold, while 10 grams stand at Rs375,631.
Silver stands at Rs6,578 per tola and Rs5,639 per 10 grams following the latest decline.
The Rs12,800 fall marks one of the more noticeable single-day moves in Pakistan’s gold market in recent sessions and once again shows how closely local precious-metal prices remain connected with developments in international markets.
