Gold prices in Pakistan have started to cool after surging to record highs last month, with the market witnessing a third straight sharp drop on Monday, February 2.
In the local market, the price of gold per tola fell by Rs21,500 during the day to settle at Rs490,362, mirroring losses in the international market. Dealers said the latest decline suggests the recent rally may have run out of steam, at least for now.
The price of 10-gram gold also moved lower, dropping by Rs18,433 to Rs420,406, according to rates shared by the All-Pakistan Gems and Jewellers Sarafa Association.
The fall follows heavy losses over the past few sessions. On Saturday, January 31, gold per tola had already dropped by Rs25,500 to Rs511,862. A day earlier, on Friday, January 30, prices had slid by an even steeper Rs35,500, bringing the rate down to Rs537,362. Together, these back-to-back declines have wiped out a large portion of last month’s gains.
Silver prices also moved lower on Monday, with the rate per tola falling by Rs601 to Rs8,405.
Internationally, precious metals came under strong pressure as commodity markets sold off sharply. Gold fell by around 9 percent to its lowest level in more than two weeks, while silver plunged by over 13 percent, after both metals had touched record highs last week.
Market sentiment was reportedly hit by developments in the US, where the selection of Kevin Warsh as the next Federal Reserve chair triggered a wave of selling across risk assets. The move pushed investors to reassess their positions, sending gold and silver sharply lower for a second straight session.
Spot gold was trading at around $4,677 per ounce at 0450 GMT after earlier sliding more than 5 percent during the session. This compares with a record high of $5,594.82 reached on Thursday. The international rate fell by $215 to $4,676 per ounce, including a premium of $20.
Despite the recent slump, some analysts remain optimistic about gold’s longer-term outlook. JP Morgan said late on Sunday that strong demand from central banks and investors could still drive gold prices to $6,300 per ounce by the end of the year.
For now, however, the market appears to be taking a breather after weeks of relentless gains, with buyers and sellers watching global cues closely before making their next move.
