Gold, silver prices rebound after brief market pause

Price per 10 grams rises by Rs20,576 in Pakistan

KARACHI:

Gold and silver prices rose in both global and local markets on Tuesday after a three-day pause.

In the international bullion market, the price of gold jumped by $240 per ounce to reach $4,916.

In the domestic market, the price of gold per tola increased by Rs24,000 to Rs514,362, while the price per 10 grams rose by Rs20,576 to Rs440,982.

Silver prices also recorded strong gains, with the per tola rate climbing by Rs741 to Rs9,146 and the price per 10 grams increasing by Rs636 to Rs7,841.

Spot gold climbed 5.8% to $4,935.56 an ounce by 0818 GMT. On Monday, it hit a low of $4,403.24, two sessions after peaking at $5,594.82.

Silver gained 10% to $87.40 an ounce on Tuesday, after suffering its biggest one-day loss on record on Friday with a 27% slump. It fell by another 6% on Monday.

In other metals, spot platinum climbed 5.7% to $2,242.55 per ounce after hitting a record high of $2,918.80 on January 26, while palladium was up 5.3% at $1,811.39.

Read: Gold slides below Rs500,000 as global prices slump

Earlier on Monday, gold prices in Pakistan extended their steep decline, sliding below Rs500,000, tracking heavy losses in international markets as bullion and silver remained under pressure due to higher margin requirements imposed by CME Group, a derivatives marketplace, and a broader reassessment of interest-rate expectations following the nomination of Kevin Warsh as the next chair of the US Federal Reserve.

In the local market, the price of gold per tola fell sharply by Rs21,500 during the day to settle at Rs490,362, according to rates released by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA). Similarly, the price of 10-gram gold declined by Rs18,433 to Rs420,406.

The latest drop follows an equally severe correction on January 31, when gold per tola closed at Rs511,862 after plunging by Rs25,500 in a single session, underscoring the heightened volatility gripping the bullion market.

Read more: Further decline in gold and silver prices across markets

Silver prices also came under pressure, with the per-tola rate slipping by Rs601 to Rs8,405, reflecting the sharp selloff witnessed in international markets.