Key Points
- Gold price per tola falls by Rs 35,500 to Rs 537,362
- Ten-gram gold declines by Rs 30,435 to Rs 460,701
- Silver price drops by Rs 1,106 to Rs 11,069 per tola
- International gold retreats despite strong monthly gains
- Global market reacts to monetary policy speculation
ISLAMABAD: Gold prices in Pakistan registered a sharp correction on Friday, with the per tola rate plunging by a massive Rs 35,500, reflecting a steep pullback in international bullion markets and easing local demand after recent record highs.
According to rates issued by the All Pakistan Gems and Jewellers Sarafa Association, gold per tola settled at Rs 537,362. The price of 10 grams of gold declined by Rs 30,435 to Rs 460,701 during the day.
The unprecedented fall, in one day, follows a strong rally in the previous session, when gold per tola surged by Rs 21,200 to close at Rs 572,862, underscoring heightened volatility in the local bullion market.
In the international market, gold prices declined by $355 to $5,150 per ounce, inclusive of a $20 premium. Spot gold fell as much as five per cent during intraday trading before settling nearly four per cent lower at around $5,183 per ounce in early Asian hours.
Market participants attributed the global decline to speculation that the United States Federal Reserve could adopt a more hawkish policy stance, triggering profit-taking after an extended rally. Despite Friday’s drop, gold remains on course for its strongest monthly performance since January 1980, supported by safe-haven demand amid persistent geopolitical and economic uncertainties.
Bullion prices have gained more than 20 percent during January, marking a sixth consecutive month of gains. US gold futures for February delivery also eased, falling nearly three percent to around $5,176 per ounce.
Meanwhile, silver prices in Pakistan also came under pressure. The per tola rate declined by Rs 1,106 to Rs 11,069, tracking weakness in international precious metals.
Analysts say the near-term direction of gold prices will depend on signals from global central banks, particularly the Federal Reserve, as well as broader risk sentiment in international markets.
