In a dramatic turn of events, the Pakistani gold market collapsed in the last 48 hours with prices plummeting by a record Rs. 8,200 per tola, ringing alarm bells among the investors as well as traders. The sharp fall is one of the sharpest in recent months, shattering confidence in what has otherwise been a conventional safe-haven investment.
The price of 24-karat gold dipped by 2,300 per tola on Friday, as the metal closed at Rs. 356,700, the All Pakistan Sarafa Gems and Jewelers Association announced. This is a sharp decline from Rs. 359,000 yesterday.
The decrease comes after Thursday’s Rs. 5,900 per tola price fall, which brings the two-day loss to Rs. 8,200. This type of sudden price fall is an unusual phenomenon and has sent most speculators into a tailspin as they attempt to re-plot their investment plans.
The trend also didn’t remain limited to per tola rates. The 10 grams 24-karat gold price also decreased by Rs. 1,972 to Rs. 305,812 from yesterday’s Rs. 307,784. 10 grams of 22-karat gold also decreased by Rs. 1,808, and is now available at Rs. 280,337, from Rs. 282,145 yesterday.
The dip was not only for gold. Prices of silver also fell in the same bearish fashion. The price of silver per tola fell by Rs. 34 to Rs. 4,023, and the price of 10 grams fell by Rs. 39 to Rs. 3,449. Across the world, prices of gold also declined. The world market dipped by $23, bringing the price down to $3,340 from $3,363. Silver dropped by $0.34 and stands at $38.74, down from the previous $39.08.
This fall in domestic and international markets is causing experts to question a series of probable causes—ranging from the value of the dollar, falling demand, to economic and geopolitical shifts. While some see it as a short-term shift, others see it as an indication of a longer-term bear trend in the precious metals market.
Now speculators and investors are watching closely as the volatility makes it possible that perhaps a bumpy future lies ahead for the bullion market.
