Gold Market Crisis in Pakistan: An In-Depth Analysis of the Historic Rs. 60,000 Correction

KARACHI: The Pakistani bullion market witnessed an unprecedented “bloodbath” this week as gold and silver prices plummeted for the second consecutive day, marking the largest two-day correction in the country’s history.

According to reports from the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA) on Saturday, January 31, 2026, the local gold market has seen a massive reversal after touching record highs earlier in the week.

The Saturday Market Update

On Saturday, the price of 24-karat gold per tola fell by a further Rs. 25,500, bringing the new rate down to Rs. 511,862. This follows a record-breaking single-day drop of Rs. 35,500 on Friday.

Similarly, the price of 10 grams of 24-karat gold decreased by Rs. 21,862, settling at Rs. 438,839. In total, gold has become cheaper by a staggering Rs. 61,000 per tola in just 48 hours, catching many retail investors and buyers by surprise.

Silver Prices Under Heavy Pressure

Silver, which had also reached an all-time high earlier in the week, was not immune to the market crash.

The price of silver per tola declined by Rs. 2,063 to settle at Rs. 9,006.
The rate for 10 grams of silver fell by Rs. 1,768, reaching Rs. 7,721.

Global Trends and Economic Drivers

The downturn was triggered by a sharp correction in the international bullion market. On Saturday, global gold rates dropped by $255 per ounce, settling at $4,895. Just days prior, gold had briefly surpassed the historic $5,500 mark.

Key reasons behind the crash include:

Profit-Taking: After gold reached record levels (Rs. 572,862 on Thursday), major investors rushed to sell their holdings and secure profits, leading to a “panic” sell-off.
US Dollar Strength: A significant surge in the value of the US Dollar globally put immense pressure on precious metals.
Monetary Policy Sentiment: Fading expectations of aggressive US interest rate cuts shifted investor interest back toward currency and bonds.

Market Sentiment

APGJSA President Qasim Shikarpuri described the plunge as the biggest he has witnessed in decades. While the decline offers a rare window for jewelry buyers ahead of the wedding season, market analysts remain cautious, noting that the volatility across global commodity markets is currently at an all-time high.

Frequently Asked Questions (FAQs)

Q1: What is the current price of 24K gold per tola in Pakistan? As of Saturday evening, the price is Rs. 511,862 per tola.

Q2: How much did gold prices fall in the last two days? Gold prices have dropped by a total of Rs. 61,000 per tola (Rs. 35,500 on Friday and Rs. 25,500 on Saturday).

Q3: Why is silver also falling? Silver often follows gold’s trajectory. Since gold saw a historic global retreat, silver investors also engaged in heavy profit-taking, leading to a per-tola drop of over Rs. 3,100 in two days.

Q4: Is it a good time to buy gold for investment? Financial experts suggest that while the current “correction” offers a lower entry point, the market is extremely volatile. Buyers are advised to consult with professional financial advisors before making large-scale investments.

Q5: What was the highest price gold reached this week? Gold hit its all-time high on Thursday, January 29, 2026, reaching Rs. 572,862 per tola.

Note: Gold rates in Pakistan are subject to change throughout the day based on international market movements and the USD/PKR exchange rate.