Gold prices fall sharply in Pakistan amid rising war fears

KARACHI:  Gold prices in Pakistan witnessed a sharp drop on Wednesday as investors are concerned about rising tensions with the neighbouring country and the potential threat of military action by India.

Due to the war drums beating in the region, gold prices in local market decreased by Rs3,400 per tola, according to data released by the All Pakistan Sarafa Jewellers Association.

Similarly, the price of 24-karat gold fell to Rs345,800 per tola, while the price for 10 grams of 24-karat gold decreased by Rs2,915, closing at Rs296,467.

Meanwhile, 22-karat gold was being sold at Rs271,771 per 10 grams.

Silver also saw a notable decline, with the per tola price dropping by Rs70 to Rs3,427, and the 10-gram silver rate falling by Rs60 to Rs2,938.

In the international market, gold prices fell by $34, reaching $3,276 per ounce.

It is worth noting that yesterday (Tuesday), gold prices had surged by Rs2,100 per tola, reaching Rs349,200, with 10 grams of 24-karat gold priced at Rs299,382.

However, gold prices in Pakistan took downward slide due to the escalating tensions between India and Pakistan in the aftermath of the Pahalgam attack.

On Monday, the price of 24-carat gold per tola dropped by Rs1,600, bringing it down to Rs347,100.

Similarly, the price of 10 grams of 24-carat gold fell by Rs1,368 to settle at Rs297,582, while 10 grams of 22-carat gold was sold for Rs272,784.

Meanwhile, the prices of silver remained unchanged, with the rate per tola recorded at Rs3,497 and 10 grams at Rs2,997.

On the other hand, Pakistan Stock Exchange (PSX) suffered a blood bath on Wednesday as it plunged 3,545 points or (3.09%) closing at 111,326 level amid escalating geopolitical tensions.  

Director Research at AKD Securities told Hum News English that investors are concerned about rising tensions between India and Pakistan especially after the late-night statement of Information Minister, indicating that Indian is planning to attack Pakistan.