Bullion market sees major sell-off; gold price falls Rs 23,900 in two days

Gold prices witnessed a sharp correction over the past two trading sessions, registering one of the steepest short-term declines in recent months, as global commodity markets reacted to shifting investor sentiment and geopolitical developments.

In the domestic market, the price of gold per tola fell by Rs 10,000 on Friday, following a substantial drop of Rs 13,900 in the previous session. Cumulatively, gold has shed Rs 23,900 in just two days, bringing the new price per tola to Rs 539,962.

Similarly, the price of 10 grams of gold declined by Rs 8,573, settling at Rs 462,930, reflecting the broader downturn in international bullion markets.

The correction follows a $100 decline in global gold prices, with the international rate per ounce falling to $5,172. Analysts attribute the drop to profit-taking by investors after recent highs, a stronger dollar in international markets, and a shift in safe-haven demand dynamics.

Despite the slump in gold, silver prices moved in the opposite direction domestically. The price of silver per tola increased by Rs 100, reaching Rs 9,004, indicating selective demand in the local bullion market.

Meanwhile, energy markets are moving in a different direction. Reports surrounding the closure of the Strait of Hormuz – a critical global oil transit chokepoint – have pushed international oil prices higher, intensifying concerns over supply disruptions. Market participants are closely monitoring developments in the region, as any prolonged disruption could fuel inflationary pressures globally and complicate central bank policy outlooks.

The contrasting movement in gold and oil underscores heightened volatility across commodity markets, as investors weigh geopolitical risks against macroeconomic signals. Analysts suggest that continued fluctuations are likely in the near term, with bullion and energy prices remaining sensitive to global developments.