Gold Witnesses Massive Drop. Gold prices in Pakistan recorded a sharp decline on Friday, just a day after touching record highs. The sudden fall surprised investors and buyers as the bullion market showed strong volatility within a short time.
Gold Price Per Tola Drops Near Rs. 5 Lac
In the local market, the price of gold per tola fell by Rs. 35,500 and settled at Rs. 537,362. These rates were released by the All-Pakistan Gems and Jewellers Sarafa Association. After this decline, gold prices moved closer to the Rs. 5 lac per tola level in Pakistan.
10 Grams Gold Price Sees Sharp Fall
The price of 10 grams of gold also declined significantly. It dropped by Rs. 30,435 and reached Rs. 460,701. This decline impacted small buyers who usually purchase gold in smaller quantities.
Gold Hit Record High a Day Earlier
A day earlier, gold prices had surged sharply. On Thursday, gold jumped by Rs. 21,200 in a single session and reached Rs. 572,862 per tola. The sudden rise followed by a steep fall highlighted extreme instability in the market.
International Gold Prices Come Under Pressure
International gold prices also declined on Friday. The global gold rate fell by $355 to $5,150 per ounce, including a premium of $20. This drop in global prices directly affected local bullion rates.
Global Factors Behind the Gold Price Decline
Globally, gold slid more than 4 percent amid market rumors. Reports suggested that the US Federal Reserve could get a more hawkish chair, which triggered profit-taking after a strong rally in gold prices.
Spot Gold and US Futures Update
In the spot market, gold was down 3.9 percent at $5,183.21 per ounce as of 0323 GMT, after falling as much as 5 percent earlier in the session. US gold futures for February delivery also declined by 2.7 percent to $5,176.40 per ounce.
Gold Records Strongest Monthly Gain Since 1980
Despite the sharp fall, gold remained on track for its strongest monthly gain since January 1980. Prices have climbed more than 20 percent in January, marking a sixth consecutive monthly gain.
Silver Prices Follow Gold’s Downward Trend
Silver prices also moved lower in the local market. The price of silver per tola fell by Rs. 1,106 and settled at Rs. 11,069, following the downward trend in gold prices.
Conclusion
Gold prices in Pakistan fell sharply after reaching record highs, bringing the rate close to Rs. 5 lac per tola. The decline was driven by global market pressure and profit-taking. Despite short-term volatility, gold remains a strong long-term investment option for buyers and investors.
