Gold prices in Pakistan plunge over Rs 60,000 in two days

KARACHI: Investors faced renewed uncertainty over the weekend as gold prices recorded sharp declines for the second consecutive day. The rate for 10 grams of 24-carat gold dropped by Rs 21,862 to Rs 438,839, while the price per tola fell Rs 25,500 to Rs 511,862, a report by Dawn News said on Sunday.

Global markets reflected the trend, with international gold prices retreating by $255 per ounce to $4,895, continuing the downtrend from the previous session.

The All Pakistan Sarafa Gems and Jewellers Association (APSGJA) reported that over Friday and Saturday, local gold prices fell a total of Rs 52,297 per 10 grams and Rs 61,050 per tola, tracking a $610 per ounce slide internationally.

Silver, which had recently drawn interest from smaller investors seeking a more affordable alternative, also came under pressure. The price of 10 grams of 24-carat silver fell Rs 1,768 to Rs 7,721, while one tola declined Rs 2,063 to Rs 9,006, reflecting a $20.63 per ounce drop in global silver rates. Over the two-day period, silver prices lost Rs 2,717 per 10 grams and Rs 3,169 per tola, in line with a $31.69 per ounce decline internationally.

Dealers noted that local market rates were trading above APSGJA quotations due to supply-demand mismatches. One dealer reported gold being sold between Rs 524,000 and Rs 525,000 per tola, compared with the official Rs 511,862, while one-tola silver changed hands for Rs 12,000 to Rs 13,000 against the association’s Rs 9,006.

Mohammad Arshad, chairman of the All Pakistan Jewellers Manufacturers Association (APJMA), said the sudden drop in precious metals had unsettled investors, prompting some to offload holdings in anticipation of further falls. Yet, he noted that the two-day gold price decline had not drawn genuine jewellery buyers.

“Families who can afford jewellery priced above Rs 500,000 per tola are less than 10 percent of the market. Most consumers are avoiding pure gold due to affordability,” he explained. Arshad added that silver was increasingly popular, particularly during the wedding season, and that interest in copper, a key component in gold refining, had surged, trading at Rs 7,000 to Rs 8,000 per kilogram compared with Rs 3,200 to Rs 3,500 previously.

Precious metals volatility escalated after reports that former Federal Reserve official Kevin Warsh had been nominated by US President Donald Trump to replace Jerome Powell as the central bank chair. The news came after gold and silver had recently soared as investors sought safe havens amid uncertainty over US policies.

Gold prices briefly retreated below $5,000 an ounce after reaching a record near $5,600, while silver fell approximately 30 percent from a historic peak above $120 per ounce to around $82. Analysts described the selloff as profit-taking amid a week marked by a weaker dollar, rising geopolitical tensions, renewed tariff threats, and concerns over a potential US government shutdown.

Despite the recent turbulence, gold is on track for a sixth consecutive monthly gain, rising more than 13 percent in January. Nicky Shiels, head of metals strategy at MKS PAMP SA, described the month as “the most volatile in precious metals history.”