Gold prices in free fall as panic selling grips global markets

KARACHI: Gold prices extended their losing streak in the global market, registering another sharp decline as selling pressure intensified and investor confidence weakened.

During the latest trading session, gold slipped to around $4,721 per ounce, falling by $172, or more than three per cent, as the precious metal struggled to recover from recent losses. The decline follows heavy profit-taking after gold touched record highs earlier this month, amid heightened volatility in global financial markets.

The weakness in gold spilled over into other commodities as well. Crude oil prices fell by nearly four per cent, with Brent crude trading around $67 per barrel and WTI crude near $63, reflecting concerns over slowing global economic growth and reduced demand expectations.

In Pakistan, the impact of the global sell-off remained evident. According to market reports, local gold prices have dropped sharply for the second consecutive day, with the rate of 10 grams of 24-carat gold falling to Rs 438,839 and per tola prices declining to Rs 511,862. Over the past two days, gold has lost more than Rs 61,000 per tola, mirroring the steep international correction.

Silver also remained under pressure, despite recent interest from small investors. Global silver prices declined further, dragging local rates lower, although demand for silver jewellery continues during the ongoing wedding season.

Market analysts attribute the sustained pressure on precious metals and energy markets to global economic uncertainty, a stronger US dollar, shifting expectations around US monetary policy, and aggressive profit-taking by investors. Recent speculation surrounding changes in US Federal Reserve leadership has added to volatility, prompting traders to reassess risk and exposure.

Despite the sharp pullback, experts note that gold remains up significantly on a monthly basis, accentuating the exceptional volatility currently dominating precious metals markets.