Gold prices plunge sharply across Pakistan

WEB DESK: Gold prices recorded a steep decline in the local market, with the price of one tola falling by Rs25,500 to Rs511,862. According to market data, the price of 10 grams of gold also dropped by Rs21,862, settling at Rs438,839.

Traders said the downward trend has been particularly sharp over the past two days, during which the price of gold per tola has fallen by a cumulative Rs61,000. Similarly, the price of 10 grams has declined by as much as Rs52,297 over the same period.

Market analysts attributed the drop to a combination of easing international gold prices and fluctuations in the exchange rate, adding that further volatility may persist in the coming days.

Late-January rally pushed gold to record levels

Gold prices in Pakistan had surged to an all-time high in late January, crossing the Rs550,000 per tola mark amid strong domestic and international pressures. On January 28, 24-karat gold was traded at Rs551,662 per tola, reflecting a sharp single-day increase of over Rs21,000. The price of 10 grams of 24-karat gold had also climbed significantly, reaching Rs472,961, while 22-karat gold was quoted at Rs433,563 per 10 grams, according to data released by the All-Pakistan Gems and Jewellers Sarafa Association.

The rally was not limited to gold alone, as silver prices had also moved higher during the same period. In the local market, 24-karat silver was sold at Rs11,911 per tola, while the price of 10 grams stood at Rs10,211, marking notable day-on-day gains.

Market participants had attributed the surge in bullion prices to a sharp rise in international gold rates, driven by a weakening US dollar and heightened geopolitical tensions. Safe-haven demand had intensified ahead of a key US Federal Reserve policy announcement, pushing spot gold to around $5,303 per ounce in global markets.