Pakistani gold buyers witnessed a dramatic price collapse on Saturday as the precious metal tumbled by Rs10,800 per tola in a single day, reflecting a steep global selloff that has shaken investor confidence worldwide.
The All Pakistan Sarafa Gems and Jewellers Association reported that 24-karat gold now stands at Rs409,736 per tola, while 10 grams dropped by Rs9,259 to Rs351,282. The sharp decline mirrors turmoil in international markets, where gold fell by $108 to $3,872 per ounce.
Silver prices also retreated, declining Rs142 per tola to Rs5,388, adding to concerns among jewellers and households preparing for upcoming wedding season purchases.
The sudden price drop comes amid a broader market panic driven by fears that massive corporate investments in artificial intelligence technology may fail to deliver expected returns. Technology stocks have slid sharply, triggering a chain reaction across global financial markets.
Despite gold’s traditional reputation as a safe-haven asset during times of uncertainty, the metal has struggled to maintain its footing. Market analysts point to a combination of factors weighing on prices: ongoing geopolitical tensions involving Iran, elevated energy costs, wild swings in tech stocks, and mounting concerns over government debt levels in major economies.
“The sky is falling,” said independent metals trader Tai Wong, describing the intensity of the selloff. Wong noted that while corporate earnings had previously supported the AI-fueled stock rally, that foundation now appears fragile.
Experts at Commerzbank suggest the technology stock collapse may have forced investors to liquidate safe-haven assets like gold to meet margin calls. However, they anticipate a recovery in precious metals as the dust settles.
Gold has now fallen approximately 30 percent from its record high of $5,595 per ounce reached in January, with demand from Asian markets remaining subdued. Still, analysts observe that central banks typically increase gold purchases when prices dip below $4,000 per ounce, which could provide support.
Other precious metals have suffered even steeper losses. Silver, platinum, and palladium lack the same institutional backing from central bank purchases, leaving them more vulnerable to market swings.
For Pakistani households, the price drop presents a double-edged sword. While lower prices may offer relief for families planning weddings or looking to purchase jewellery, the volatility raises concerns about the stability of gold as a savings vehicle. Many Pakistani families hold significant portions of their wealth in gold, viewing it as protection against currency depreciation and inflation.
The prolonged decline offers little indication of a quick rebound, leaving market watchers cautious about the near-term outlook for precious metals.
