Gold prices in Pakistan witnessed a massive decline on Friday after reaching record highs just a day earlier, sending shockwaves through the local bullion market.
According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of gold per tola dropped by Rs. 35,500, settling at Rs. 537,362.
Similarly, the price of 10 grams of gold fell by Rs. 30,435, bringing it down to Rs. 460,701.
Gold Had Reached Record High a Day Earlier
On Thursday, gold prices had surged sharply, gaining Rs. 21,200 in a single session to reach an all-time high of Rs. 572,862 per tola.
This sudden rise and fall highlights the extreme volatility currently dominating Pakistan’s gold market.
International Gold Prices Also Under Pressure
The decline in local prices followed a major downturn in the global market.
Internationally, gold prices fell by $355, settling at around $5,150 per ounce, including a $20 premium.
Meanwhile, spot gold dropped by 3.9% to $5,183.21 per ounce, after falling as much as 5% during early trading.
US gold futures for February delivery also slipped 2.7% to $5,176.40 per ounce.
Silver Prices Also Decline
Silver prices mirrored the downward trend in gold.
In the local market, silver per tola dropped by Rs. 1,106, reaching Rs. 11,069.
This reflects broader weakness in precious metals amid changing global economic conditions.Why Did Gold Prices Fall Suddenly?
Market experts believe several factors contributed to the sharp decline:
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📉 Rumors of a more hawkish US Federal Reserve leadership
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💼 Profit-taking after a strong rally
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🌍 Shifting global economic outlook
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📊 Strengthening of the US dollar
These developments triggered investors to sell gold after weeks of heavy buying.
Gold Still Records Strong Monthly Performance
Despite the recent drop, gold remains on track for its strongest monthly gain since 1980.
So far in January, gold prices have increased by more than 20%, marking the sixth consecutive month of gains.
Investors continue to view gold as a safe-haven asset amid:
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Geopolitical tensions
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Inflation concerns
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Global economic uncertainty
Impact on Pakistani Investors
The sudden fluctuation has created mixed reactions among investors and buyers:
For Buyers
✅ Opportunity to purchase at lower rates
✅ Potential long-term investment advantage
For Sellers
⚠️ Reduced profit margins
⚠️ Market uncertainty
Jewellers advise customers to stay alert and monitor daily rates before making major purchases.
Latest Gold & Silver Rates in Pakistan (Summary)
| Metal | Price | Change |
|---|---|---|
| Gold (Per Tola) | Rs. 537,362 | ▼ Rs. 35,500 |
| Gold (10 Grams) | Rs. 460,701 | ▼ Rs. 30,435 |
| Silver (Per Tola) | Rs. 11,069 | ▼ Rs. 1,106 |
What’s Next for Gold Prices?
Experts predict that gold prices may remain volatile in the coming weeks, depending on:
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US monetary policy decisions
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Global inflation trends
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Political developments
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Currency fluctuations
Investors are advised to adopt a cautious approach and seek professional advice before making large investments.
Conclusion
Gold prices in Pakistan have suffered a sharp correction, bringing rates closer to Rs. 5 lakh per tola after touching record highs.
While the decline has created short-term uncertainty, gold continues to remain a strong long-term investment option amid global instability.
Staying informed and tracking daily updates will help buyers and investors make better financial decisions.
