Gold prices in Pakistan plunged to historic lows, with 10 grams of 24kt gold falling sharply by Rs30,435 to reach Rs460,701. Meanwhile, one tola of gold tumbled by Rs35,500, reaching Rs537,362. Silver also suffered significant losses, with 10 grams sliding to Rs9,489, down Rs949, while one tola of silver sank Rs1,106 to Rs11,069.
The All Pakistan Sarafa Gems and Jewellers Association (APSGJA) confirmed the steep decline. Its President, Mr. Skikarpuri, called it the most significant plunge in his 50 years in the trade. He remarked, “Even during the historic gold falls of the 1980s, prices declined gradually. But a single-day plunge of $355 per ounce has never happened before.”
Global triggers push prices down sharply
The fall in local gold mirrored a global selloff. World gold prices dropped to $5,150 per ounce, down $355 per ounce in one day. Spot gold fell 8.9% to $4,915.17 per ounce, after touching an intraday low of $4,898.89. US gold futures for February delivery slid 7.7% to $4,940.70.
Analysts described the selloff as profit-taking triggered by multiple factors. US President Donald Trump’s nomination of Kevin Warsh as the next Federal Reserve chair contributed to market uncertainty. The US dollar strengthened, gaining 0.7%, making dollar-priced gold more expensive for overseas buyers. Suki Cooper, head of commodities research at Standard Chartered Bank, said, “Dollar strength and real yield expectations combined to trigger heavy profit-taking.”
Investors and buyers react cautiously
Despite the sharp fall, gold remains costly for jewellery buyers. Skikarpuri said footfall in shops remains low. However, investors faced losses due to steep price drops. In contrast, gold still recorded nearly a 12% rise this month after hitting a record high of $5,594.82 on Thursday.
Silver also faced a historic drop. Spot silver fell 21.92% to $90.66 per ounce, after touching a low of $89.93. Platinum lost 18% to $2,155.73 per ounce, while palladium plunged 13.7% to $1,741.36. Analysts noted that broader macroeconomic flows, policy uncertainty, and geopolitical risks contributed to declines across precious metals.
Meanwhile, gold demand in Asia remained robust. India experienced unprecedented premiums on investment gold, while China reported rising demand from both jewellery buyers and investors.
According to Joe Cavatoni, Senior Market Strategist at the World Gold Council, “In uncertain times, gold remains a strategic hedge for portfolios rather than a tool for quick trades during market volatility.”
