ISLAMABAD: Gold prices in Pakistan fell sharply on Saturday, extending losses from the previous session, as international prices slid amid easing investor demand for safe-haven assets.
According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of gold declined by Rs25,500 per tola to Rs511,862 in the local market.
The price of 10 grammes of gold fell by Rs21,862 to Rs438,839, the association said.
The latest decline follows a steep fall on Friday, when gold prices dropped by Rs35,500 per tola, bringing the total loss over two days to Rs61,000 per tola.
International market pressure
In the international market, gold prices fell by $255 to $4,895 per ounce, including a premium of $20, according to APGJSA data.
The global sell-off came after investors were reassured by reports, later confirmed, that US President Donald Trump had nominated former Federal Reserve official Kevin Warsh to replace Jerome Powell as chair of the US central bank.
Analysts said expectations of a more hawkish monetary stance reduced demand for precious metals, which had surged in recent weeks on policy uncertainty and geopolitical risks.
Gold prices had climbed to a record high near $5,600 per ounce on Thursday before reversing course.
At one point on Friday, prices fell as much as 12%, retreating below $5,000 per ounce.
Silver also declines
Silver prices also fell sharply in Pakistan. According to APGJSA, the price of silver dropped by Rs2,063 to Rs9,006 per tola on Saturday.
In the international market, silver slid around 30% to about $82 per ounce, after touching an all-time high above $120 per ounce a day earlier.
Earlier volatility
On Friday, gold prices in Pakistan had already seen a massive decline. The price per tola fell by Rs35,500 to Rs537,362, while 10 grammes dropped by Rs30,435 to Rs460,701, APGJSA said.
A day earlier, on Thursday, gold had gained Rs21,200 per tola to reach Rs572,862, reflecting the sharp volatility in the market.
Spot gold fell 3.9% to $5,183.21 per ounce by early Friday, while US gold futures for February delivery dropped 2.7% to $5,176.40 per ounce.
