Gold prices in Pakistan have plunged sharply for a second consecutive day rattling bullion markets and reflecting a broader global sell‑off in precious metals. Local dealers report that the price of gold fell by an additional Rs 25,500 per tola bringing the rate down to Rs 511,862 a steep drop following massive gains just days earlier.
The slide continued in the international market as well where gold lost about $255 an ounce dipping below $4,900 and contributing to a cumulative drop of Rs 61,000 per tola over two days. Silver prices also tumbled alongside gold.
Analysts say the sell‑off comes as investors were reassured by the nomination of Kevin Warsh to lead the U.S. Federal Reserve easing safe‑haven demand for bullion. Precious metals had surged recently on uncertainty over U.S. economic policy but those gains have now reversed sharply as markets reacted to the Fed leadership news.
Gold traditionally seen as a hedge against inflation and geopolitical risk fell as much as 12 % at one point retreating from recent record highs near $5,600 per ounce. Silver too saw steep losses after hitting an all‑time peak just days ago.
In Pakistan where gold is widely held as an investment and cultural asset the price slump could weigh on consumer sentiment and jewelry market activity. Traders say the rapid swings are driven largely by global trends and investor repositioning rather than changes in local demand.
As markets continue to adjust price watchers will be closely watching global monetary policy signals and international economic indicators to gauge whether this slump stabilizes or extends further.
