Gold Prices Drop as Speculative Assets Face Liquidation

Gold prices declined on October 25, 2026, following a global trend that saw international prices drop to $3,995 per ounce. In Pakistan, 24-karat gold fell for five consecutive sessions to Rs. 422,036 per tola, marking a total decrease of Rs. 17,000 per tola since Tuesday. This decline erased gains from early October and left prices approximately Rs. 20,000 below the monthly peak of Rs. 442,036 recorded on October 10.

Market analysis indicates that gold and gold mining equities are under selling pressure as part of a broader liquidation of tech stocks and speculative assets. Some analysts suggest that investors are selling liquid assets like gold to meet margin calls during a liquidity crisis, which could potentially push international prices down to between $3,000 and $3,500 per ounce.

Despite the current slide, some projections suggest a long-term recovery. Analysts argue that a significant price crash could trigger aggressive monetary easing from the Federal Reserve, which might eventually drive gold prices toward $7,500 or higher.