KARACHI – Gold prices recorded highest single-day drop of Rs35,500 per tola in Pakistan in line with volatility in international market on Friday.
The per tola price of gold settled at Rs573,362 a day after it surged to historic high of Rs572,862 in previous sessions.
Similarly, the price of 10 grams of gold has fallen by Rs30,435, bringing it to Rs460,701.
On the global front, the price of gold has also seen a decline, dropping by $355 to $5,150 per ounce amid selling pressure due to profit-taking rally by investors.
It is recalled over the last two days, gold prices had surged by over Rs42,000, indicating high volatility in the precious metals market.
Analysts are closely watching these fluctuations, as the market remains unpredictable.
The sudden drop in gold prices has sparked conversations about the potential long-term impact on the jewelry and investment sectors in Pakistan.
The sudden downturn was triggered by a liquidity scramble in the wake of steep losses in American tech sector, forcing investors to sell even their “safe-haven” gold holdings. The unprecedented shake-up comes as the global gold market plunged dramatically on Thursday, January 29, erasing nearly $3.4 trillion in market value in a single day.
The metal had recently crossed the $5,000 mark for the first time, nearly doubling in value over the past year. Silver wasn’t spared either, falling 1.6%, while Bitcoin plunged over 5%, dipping below $85,000. Investors had flocked to these assets seeking safety amid a volatile global backdrop of an expensive U.S. stock market, political uncertainty, trade threats, and soaring government debt—but the surge proved unsustainable.
The sell-off was triggered not by fundamentals but by a liquidity crunch. A tech-sector meltdown, led by a nearly 12% crash in Microsoft, forced institutional investors to liquidate gold holdings to cover losses and margin calls. What was once the “safe-haven” asset suddenly became a source of urgent cash, accelerating the freefall.
Market experts warned that gold had been “overbought” after a staggering 29% rise since the start of the year. Rising geopolitical tensions, including US-Iran friction and trade disputes involving Greenland—had added a risk premium that unraveled when panic-selling hit.
More to follow…
