Gold Rally Pauses as Prices Drop Sharply in Global and Local Markets

After weeks of strong gains, gold prices have witnessed a sharp correction in international markets, with the impact clearly visible in Pakistan’s bullion market.

Big Drop in Pakistan

The price of 24-karat gold per tola has fallen significantly, reflecting global market movements. Within days, the market saw heavy fluctuations — sharp declines followed by partial recovery — showing how volatile the precious metal has become.

Also readLPG Price Surges Above Official Rate, Consumers Feel the BurdenEmergency Talks Begin as Cricket Authorities Try to Resolve Match Situation

Ten grams of gold also recorded a major drop, while silver prices slid steeply as well.

What Caused the Fall?

Analysts say the decline is mainly due to profit-taking by investors after gold touched record levels. A stronger US dollar and temporary demand slowdown also contributed.

Also readLPG Price Surges Above Official Rate, Consumers Feel the BurdenEmergency Talks Begin as Cricket Authorities Try to Resolve Match SituationEarthquake Activity Concern Raised for Mid-February Period

Expert View

Economic analyst Raja Kamran says global demand for gold remains strong in the long run, as central banks are gradually reducing reliance on the US dollar and increasing gold reserves. He believes geopolitical tensions and global uncertainty continue to support gold as a safe investment.

Market representative Abdullah Chand from Karachi bullion market said the recent fall appears to be a “market correction” after continuous increases in December and January, not a long-term downturn.

Silver Also Under Pressure

Silver prices have also dropped sharply in international markets, leading to cautious behavior among investors.

Also readLPG Price Surges Above Official Rate, Consumers Feel the BurdenEmergency Talks Begin as Cricket Authorities Try to Resolve Match SituationEarthquake Activity Concern Raised for Mid-February PeriodGold Prices Hit New Record Level Buyers Feel the PressurePunjab School Reopening Update After Long WeekendPunjab Introduces Biometric Attendance for Matric and Inter Exams