Gold prices plunge sharply in Pakistan amid global fall

ISLAMABAD: (Web Desk) – Gold prices in Pakistan witnessed a historic drop on Monday, following a sharp decline in international markets where the precious metal fell to its lowest level in four months.

Globally, gold prices dropped by more than six percent to around $4,203 per ounce, continuing a losing streak for the ninth consecutive session. The decline comes amid growing uncertainty linked to the ongoing Middle East conflict and rising expectations of higher global interest rates.

In line with international trends, local gold markets also saw a major correction. According to the All-Pakistan Gems and Jewellers Sarafa Association, the price of gold per tola fell dramatically by Rs43,600 — one of the biggest single-day drops in Pakistan’s history — bringing the new rate down to Rs447,762.

Similarly, the price of 10 grams of gold dropped by Rs37,380, settling at Rs383,883. Silver prices also declined, with per tola rates falling by Rs800 to Rs6,884.

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Market analysts attribute the downward trend to shifting global financial expectations. As the conflict involving Iran continues to escalate and oil prices remain elevated, investors are now anticipating possible interest rate hikes rather than cuts. This reduces the attractiveness of gold, which does not offer any yield.

Despite inflationary pressures caused by high oil prices and supply disruptions — especially due to tensions around the Strait of Hormuz — rising interest rates tend to weigh on gold demand.

Other precious metals also recorded notable declines. Silver fell significantly, while platinum and palladium also dropped to multi-month lows, reflecting broader weakness across commodity markets.