ISLAMABAD: Gold prices in Pakistan experienced a dramatic plunge on Monday with the 24-karat rate per tola sliding by a record Rs43,600 to settle at Rs447,762. This unprecedented single-day collapse has sent shockwaves through the national bullion market and left investors reeling from the sudden reversal.
The steep fall mirrors turmoil on global exchanges where international gold prices tumbled more than eight percent last week. The yellow metal hit its lowest level in four months while logging its biggest weekly loss in 43 years.
Analysts attribute the rout directly to escalating conflict in the Middle East. The ongoing Iran war has boosted energy prices sharply and raised fresh inflation concerns that have curbed expectations for global interest rate cuts.
Locally the per 10-gram price of 24-karat gold also crashed by Rs37,380 to Rs383,883. Meanwhile 22-karat gold per 10 grams dropped Rs34,266 to Rs351,905 according to official figures certified by the All Pakistan Sarafa Gems and Jewellers Association.
International spot gold per ounce fell by $436 to settle at $4,250 confirming the bearish global trend reported across major financial centres. Pakistan’s rates remain tightly aligned with these benchmarks through interbank exchange mechanisms.
Over the past month alone domestic gold prices have shed a cumulative Rs116,100 per tola. The latest plunge pushed values below the key psychological barrier of Rs450,000 triggering immediate reactions across Karachi Lahore and other major trading hubs.
Investors who rode earlier rallies to multi-year highs now face significant paper losses. Many had viewed gold as a hedge against domestic inflation yet the speed of the decline has shattered short-term confidence.
Jewelers report mixed signals with some retailers noting increased footfall from bargain hunters seeking lower entry points. Others however worry about squeezed margins and delayed wedding season orders that traditionally drive peak demand.
The All Pakistan Sarafa Gems and Jewellers Association confirmed the rates based on 999 purity standards. No immediate statement on further interventions emerged yet traders remain on high alert for any policy signals from global central banks.
Geopolitical developments surrounding the Iran conflict continue to dominate sentiment. Energy price spikes linked to the unrest have directly eroded gold’s safe-haven appeal prompting a broad risk-off shift in commodity markets.
Pakistan’s reliance on imported gold makes the local market particularly sensitive to these external shocks. The rupee’s movement against the dollar further amplifies daily fluctuations though Monday’s drop stemmed overwhelmingly from international factors.
Despite the historic scale of the correction some market observers see potential opportunity. Long-term holders may view current levels as attractive given gold’s track record of rebounding after sharp corrections driven by temporary geopolitical flares.
Yet persistent selling pressure suggests caution. Should Middle East tensions escalate further analysts warn additional downside remains possible in both global and domestic pricing.
The episode underscores Pakistan’s deep integration with worldwide precious metals dynamics. Local bullion traders now await stabilisation signals as the dust settles on this record-breaking session.
Broader economic ripples could ease pressure on household budgets planning gold purchases amid ongoing inflation challenges. At the same time the jewellery sector which supports thousands of artisans faces short-term uncertainty.
International coverage from leading outlets has validated the scale of the rout aligning perfectly with domestic observations. As trading resumes focus shifts to whether this marks the bottom or signals deeper correction ahead.