KARACHI: Uncertainty gripped investors on Saturday as gold prices fell sharply for a second straight day, with 10-gram and one-tola rates dropping by Rs21,862 and Rs25,500 to Rs438,839 and Rs511,862, respectively.

International gold prices also extended losses, shedding $255 an ounce to $4,895 for a second consecutive session.

According to the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), 24-carat gold rates showed a cumulative decline of Rs52,297 per 10 grams and Rs61,050 per tola between Friday and Saturday, tracking an overall $610 an ounce drop in global prices over the period.

Silver prices also came under pressure, surprising small and medium investors who had shifted to the cheaper metal as gold surged in recent weeks.

Silver also extends losses as prices fall to Rs9,006 per tola

The 10-gram and one-tola silver (24-carat) fell by Rs1,768 and Rs2,063 to Rs7,721 and Rs9,006, respectively, in line with a $20.63 an ounce decline in international silver to $85.31.

Over the past two days, silver prices were down by Rs2,717 per 10 grams and Rs3,169 per tola, based on a $31.69 an ounce fall in global rates.

Market sources said gold and silver were trading on Saturday at rates higher than the official APSGJA quotations, citing a demand-supply gap.

A dealer said gold was being sold at Rs524,000 to 525,000 per tola compared with APSGJA’s rate of Rs511,862, while one-tola silver was quoted at Rs12,000 to 13,000 against the association’s Rs9,006.

All Pakistan Jewellers Manufacturers Association (APJMA) Chairman Mohammad Arshad said the steep fall in gold and silver prices had unsettled investors, with some selling in anticipation of further declines.

However, he said the two-day drop of Rs61,050 per tola in gold prices had failed to draw genuine jewellery buyers.

“Those families who can afford jewellery at over Rs500,000 per tola are hardly 10 per cent. Most consumers have avoided buying pure gold jewellery due to affordability issues,” Mr Arshad said.

He said buyers were increasingly shifting towards silver jewellery for the wedding season. “I think silver is the future,” he added.

He also said interest in copper had grown, noting that it was trading at Rs7,000-8,000 per kg compared to Rs3,200-3,500 previously. Copper is used in gold refining processes.

‘Most volatile month’

The precious metals, viewed as safe-haven investments, had already begun sliding on reports, later confirmed, that US President Donald Trump had nominated former Fed official Kevin Warsh to replace Jerome Powell as chair of the US central bank.

Precious metals prices tumbled on Friday after surging in recent days when investors sought a safe haven over doubts about Mr Trump’s policies, AFP reported.

Gold fell as much as 12pc at one point, retreating below $5,000 an ounce after hitting a record high near $5,600 on Thursday.

Silver, which Thursday reached an all-time peak above $120 an ounce, shed around 30pc to about $82 an ounce.

Financial markets have endured a roller-coaster ride this week as traders weathered a weaker dollar, Mr Trump’s threats against Tehran, the president’s resumption of tariff threats and a possible US government shutdown.

Reuters reported on Friday that the selloff, described by analysts as profit-taking, also pressured other precious metals.

Gold remains on track for a more than 13pc rise this month, marking its sixth consecutive monthly increase.

“January 2026 is done, (and) it will go down as the most volatile month in precious metals history,” said Nicky Shiels, head of metals strategy at MKS PAMP SA, in a note.

Published in Dawn, February 1st, 2026