Gold, Silver Bounce Back After Three-Day Lull

KARACHI:

Gold and silver prices rebounded sharply in both international and domestic markets on Tuesday, snapping a three-day pause and recovering from recent heavy losses.

In the global bullion market, gold prices jumped by $240 per ounce to $4,916, with spot gold rising 5.8% to $4,935.56 by 0818 GMT. The metal had touched a low of $4,403.24 on Monday, just two sessions after hitting a record peak of $5,594.82.

In Pakistan’s local market, gold prices surged significantly. The per-tola rate climbed by Rs24,000 to Rs514,362, while the price of 10 grams increased by Rs20,576 to Rs440,982.

Silver also posted strong gains. Internationally, spot silver jumped 10% to $87.40 an ounce after suffering a historic 27% single-day plunge on Friday and an additional 6% decline on Monday. Locally, silver prices rose by Rs741 per tola to Rs9,146, while the 10-gram rate increased by Rs636 to Rs7,841.

Other precious metals followed the upward trend. Spot platinum gained 5.7% to $2,242.55 per ounce after previously hitting a record high of $2,918.80 on January 26, while palladium rose 5.3% to $1,811.39.

The rebound comes after a sharp selloff earlier this week, when gold prices in Pakistan fell below Rs500,000 per tola amid heavy global losses. The decline was driven by higher margin requirements imposed by CME Group and shifting expectations around US interest rates following the nomination of Kevin Warsh as the next Federal Reserve chair.

On Monday, gold per tola dropped by Rs21,500 to Rs490,362, while 10-gram gold fell by Rs18,433 to Rs420,406, according to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA). Silver prices also weakened, slipping by Rs601 per tola to Rs8,405.

The sharp swings highlight continued volatility in the bullion market, following a steep correction on January 31 when gold per tola plunged by Rs25,500 in a single session.