Gold prices fall after record high in Pakistan

KARACHI: Gold prices in Pakistan eased on Thursday after hitting an all-time high a day earlier, dealers said, tracking a modest pullback in international markets.

The price of gold fell by Rs800 per tola, bringing the rate down to Rs505,562, after crossing the Rs500,000 mark for the first time on Wednesday and shattering previous records.

The price of 10 grams of gold declined by Rs686 to Rs433,437, according to local bullion associations.

In the international market, spot gold slipped by $8 to $4,832 per ounce, contributing to the domestic price correction.

Silver prices also retreated after reaching record levels a day earlier. The price of silver fell by Rs30 per tola to Rs9,904, traders said. Analysts said the decline reflects short-term profit-taking following a sharp rally, while broader sentiment remains supported by global economic uncertainty and strong demand for safe-haven assets.

On the other hand, global rating agency Fitch on Wednesday maintained Pakistan’s long-term credit rating at B- with a negative outlook, citing challenges in political stability, governance, and institutional standards.

In its latest report, Fitch also assigned a recovery rating for Pakistan, estimating that investors in the country’s securities could recover 31 to 50 per cent of their investments in the event of a default.

The report described Pakistan’s governance score as weak, pointing to low levels of political stability, rule of law, and institutional quality.

According to Fitch, Pakistan ranks at 22 per cent on the World Bank’s governance index, reflecting weak institutional capacity.