Local gold plunges by Rs35,500 per tola

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UK gold bars and gold Sovereign coins are displayed at Baird & Co in Hatton Garden in London, Britain on October 8, 2025. — Reuters/File
UK gold bars and gold Sovereign coins are displayed at Baird & Co in Hatton Garden in London, Britain on October 8, 2025. — Reuters/File

KARACHI: The 10-gram and one-tola gold (24kt) on Friday recorded the highest ever single day drop of Rs30,435 and Rs35,500 to Rs 460,701 and Rs537,362, respectively.

The 10-gram and one-tola silver (24kt) also fell to Rs9,489 and Rs11,069, showing a drop of Rs949 and Rs1,106.

As per rates announced by All Pakistan Sarafa Gems and Jewellers Association (APSGJA), world gold rates recorded a massive single day record fall in world price to $5,150 per ounce, down by a record $355 per ounce.

APSGJA President Mr Skikarpuri said “this is the biggest ever plunge in my entire career in the gold trade spanning over over five decades. In 1974, the per tola gold rate was Rs240.”

He recalled that the world gold rate had fallen slowly to $245 per ounce from $852 in the entire 1980 period but it cannot match the abrupt single day drop of $355 per ounce on Friday.

Spot gold and silver record worst single-day drop of 8.9pc and 21.92pc to $4,915.17 and $90.66 an ounce

“The gold price is still unaffordable for many jewellery buyers despite falling by Rs35,500 per tola,” he said, adding that jewellery buyers’ footfall at the shops is still very low. However, investors had definitely suffered owing to steep drop in prices.

According to Reuters, gold fell and was poised for its biggest daily loss since 1983, as the dollar strengthened after US President Donald Trump announced his choice for Fed chair, while silver was heading for its worst day on record.

Spot gold dropped 8.9pc to $4,915.17 per ounce at 12:30 p.m. ET (1730 GMT), after retreating to an intraday low of $4,898.89 earlier. US gold futures for February delivery slipped 7.7pc to $4,940.70.

The selloff, described by analysts as profit-taking, also pressured other precious metals.

The triggers behind the sell-off could be a combination of factors, ranging from the Fed Chair announcement to broader macro flows, said Suki Cooper, global head, commodities research at Standard Chartered Bank.

Whether we look at the dollar or expectations for real yields, a combination of these drivers has helped trigger profit-taking, she added.

Trump named former Federal Reserve Governor Kevin Warsh as his choice to succeed Jerome Powell as Fed chair in May, placing a frequent critic of the central bank in a key leadership role. Gold hit a record peak of $5,594.82 on Thursday and remains on track for a nearly 12pc rise this month.

The US dollar index gained 0.7pc, rebounding from a four-year low earlier this week and making greenback-priced gold more expensive for overseas buyers.

Meanwhile, Joe Cavatoni, Senior Market Strategist, Americas, and Head of Public Policy, US, World Gold Council said, “in an environment shaped by policy uncertainty, rising debt burdens and geopolitical risk, gold is increasingly being viewed as a strategic portfolio allocation rather than a short-term trade.” Gold premiums in India hit decade-highs on investment demand, while China saw gains on jewellery and investment interest.

Among other precious metals, spot silver was down 21.92pc at $90.66 an ounce after dropping as low as $89.93. Prices were on track for their biggest daily drop on record, based on LSEG data available through 1982.

The white metal hit a record high of $121.64 on Thursday and has surged more than 23pc this month.

Spot platinum lost 18pc to $2,155.73 an ounce and palladium plunged 13.7pc to $1,741.36.

Published in Dawn, January 31st, 2026

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