ISLAMABAD — Gold prices in Pakistan recorded an unprecedented drop on Monday, marking the largest single-day decline in the country’s history, as global market pressures triggered a sharp sell-off in the precious metal.
According to market data, the price of gold per tola dropped dramatically by Rs43,600, settling at Rs447,762. Similarly, the price of 10 grams of gold fell by Rs37,380 to Rs383,883.
The drop was mirrored in international markets, where gold prices plunged by $436 to $4,250 per ounce. Analysts described the decline as the steepest one-day drop ever recorded, with local prices now down by nearly Rs125,000 from their all-time high.
Globally, gold extended its losses after suffering its biggest weekly decline in more than four decades. At one point, prices fell by over 8% during Monday’s trading session, reaching a four-month low. Reports indicate that spot gold dropped 4.9% to $4,266.47 per ounce, after earlier slipping to as low as $4,097.99 — its weakest level since late November.
Market experts attribute the downturn to a combination of a strengthening US dollar and growing expectations of interest rate hikes by the Federal Reserve. These factors have reduced the appeal of gold as a safe-haven investment, prompting investors to exit their positions.
Since the escalation of tensions in the Middle East in late February, gold prices have declined by approximately 22%, and have fallen nearly 25% from their record peak of $5,594.82 recorded in late January.
Analysts warn that volatility may persist in the coming days, as global economic indicators and monetary policy expectations continue to influence investor sentiment.
