Gold prices in Pakistan witnessed a severe downturn for the second consecutive day on Saturday, mirroring a sharp global sell-off in precious metals. The dramatic drop comes just days after the commodity had hit record highs in the local market.
Steep Decline in Local Prices
According to data from the All Pakistan Gems and Jewellers Association, the price of gold (24 karat) fell by Rs25,500 per tola in a single day, settling at Rs511,862. The price for 10 grams declined by Rs21,862 to Rs438,839.
This follows a Rs35,500 per tola drop recorded the previous day, bringing the total two-day slump to a staggering Rs61,000 per tola.
International Market Triggers
The local decline tracked a steep fall in international markets. Globally, gold prices dropped by $255 to $4,895 per ounce. The sell-off was triggered by renewed investor confidence following US President Donald Trump’s nomination of a new Federal Reserve chair.
Investors had flocked to gold as a safe-haven asset amid recent political uncertainty. However, prices tumbled after Trump confirmed the nomination of former Fed official Kevin Warsh to replace Jerome Powell, soothing market fears about prolonged policy instability.
Global Precious Metals Rout
The reaction was severe across the board:
- Gold fell as much as 12% at one point, retreating below $5,000 an ounce after hitting a record high near $5,600 on Thursday.
- Silver, which reached an all-time peak above $120 an ounce, shed around 30% to approximately $82 an ounce.
The sharp correction highlights the volatility of precious metals, which had experienced a parabolic rise in recent weeks as investors sought safety. Market analysts suggest the sell-off represents a significant profit-taking move and a recalibration of risk appetite following the key Fed announcement.
