Gold prices plunge sharply in local market as global rates slide

KARACHI: Gold prices witnessed a steep decline in the local bullion market on Saturday, shedding Rs25,500 per tola, amid a sharp downturn in international prices, according to the All Pakistan Sarafa Gems and Jewellers Association (APSGJA).
As per the association, the price of 24-karat gold per tola dropped to Rs511,862, reflecting one of the largest single-day declines in recent weeks. Similarly, the price of 10 grams of 24-karat gold fell by Rs21,862 to settle at Rs438,839. The price of 10 grams of 22-karat gold also declined significantly, losing Rs20,041 to close at Rs402,283.
Market sources attributed the sharp fall in domestic gold prices primarily to a strong correction in the global bullion market, coupled with reduced local demand at elevated price levels. In the international market, gold prices fell by $255 per ounce, settling at $4,895, as investors booked profits following recent highs and adjusted positions amid shifting global economic indicators.
Traders noted that the easing of global inflation expectations, movements in the US dollar, and speculation surrounding interest rate trajectories contributed to the downward pressure on precious metals. The correction also reflected reduced safe-haven demand after recent volatility in global financial markets.
Silver prices mirrored the downward trend. In the local market, per tola silver declined by Rs2,063 to Rs9,006, while the price of 10 grams of silver dropped by Rs1,768 to Rs7,721. On the international front, silver prices fell by $10.63 to $85.31 per ounce,further weighing on domestic rates.
Bullion market analysts said that while the sharp decline may attract short-term buyers, overall sentiment remains cautious due to persistent volatility in global commodity markets. They added that future price movements will largely depend on international developments, currency fluctuations, and geopolitical factors.
Jewellers, meanwhile, reported subdued trading activity, as consumers adopted a wait-and-see approach in anticipation of further price adjustments. However, some market participants believe that the recent correction could provide temporary relief to buyers ahead of the upcoming wedding season.
The precious metals market is expected to remain sensitive to global cues in the coming days, with traders closely watching international economic data and central bank signals for direction.