Pakistan’s gold market sees a sharp sell-off as international bullion prices plunge by $120 per ounce amid heightened geopolitical uncertainty.
KARACHI: Gold prices in Pakistan suffered a dramatic Rs12,800 per tola decline on Monday, marking one of the sharpest single-day falls in the domestic bullion market amid heightened geopolitical uncertainty.
According to the All Pakistan Gems and Jewellers Association, the price of 24-karat gold fell to Rs438,136 per tola, down from the previous closing price of Rs450,936.
The precious metal also recorded a substantial decline on a 10-gram basis. The price of 24-karat gold dropped by Rs10,973, settling at Rs375,631 per 10 grams, compared with the previous close of Rs386,604.
The sharp sell-off rattled the domestic bullion market as international gold prices also came under intense pressure amid rapidly changing geopolitical developments.
Geopolitical uncertainty weighs on gold
Bullion market experts attributed the sharp decline in Pakistan’s gold prices to prevailing geopolitical uncertainty.
Developments surrounding tensions in the Middle East and the closure of the Strait of Hormuz were cited as factors contributing to pressure on precious-metal prices.
The sudden movement has highlighted the sensitivity of domestic gold rates to developments in international bullion markets, particularly when global risk sentiment changes rapidly.
International gold prices plunge
The decline was even more pronounced in international markets, where gold prices fell by $120 per ounce.
International gold ended at $4,156 per ounce, compared with the previous closing price of $4,284, representing a substantial retreat in global bullion prices.
Movements in international gold prices have a direct bearing on domestic bullion rates, alongside exchange-rate fluctuations and local market conditions.
Gold investors face sharp reversal
The latest fall marks a dramatic reversal for gold investors, with the precious metal facing heavy selling pressure as markets digest rapidly changing geopolitical developments.
The sharp decline in both domestic and international prices has increased market volatility, with bullion dealers and investors closely monitoring developments in the Middle East.
Market participants are also watching for further movements in international commodity and precious-metal prices, which could influence gold rates in Pakistan in the coming sessions.