KARACHI: Gold has suffered the highest-ever recorded decline in the world market, by $436 per ounce to $4,250, plunging the 10-gram and one-tola gold rates in the local market by Rs37,380 and Rs43,600, respectively.

On January 29, Pakistan witnessed the highest-ever 10 grams and one tola gold rates of Rs491,135 and Rs572,862, after the global gold price reached $5,505 per ounce. In some markets at that time, traders were seen demanding Rs580,000-Rs590,000 per tola.

On Feb 28, the 10-gram and one-tola rates in Pakistan were Rs472,018 and Rs550,562 based on the world gold rate of $5,278 per ounce. The Iran war, however, led to a steep decline, and the current gold prices are Rs383,883 per 10g and Rs447,762 per tola. The US and Israel attacked Iran on Feb 28.

As per reports in the international media, the gold price fell by more than 8 per cent to its lowest level in the past four months. It dropped more than 10pc last week, which is its steepest weekly loss since February 1983, and has also retreated about 25pc from its record peak of $5,594.82 per ounce reached on Jan 29.

Traders say many people rushing to sell precious metal amid uncertainty; Dubai has ‘more sellers than buyers’

President of the All Pakistan Sarafa Gems and Jewellers Association, Qasim Shikarpuri, said crude oil prices are crawling up while gold has been losing its shine, followed by a depreciating US dollar in various countries.

“Historically, gold prices in wars, after reaching an intensity, have seen a steep drop in world markets,” he said, referring to the Iraq war, as gold initially started climbing before losing its lustre as the war intensified.

“People are trying hard to sell the precious metal all over the world, especially in Dubai,” he said, adding that Dubai has more sellers than gold buyers, who are willing to sell gold $40–50 per ounce cheaper and leave Dubai.

When asked when worldwide gold selling will stop, he said that if crude oil prices fall in the coming months, then the gold price will also drop.

He said gold prices had unexpectedly dropped by a wide margin as stakeholders were expecting a fall of $100-200 per ounce rather than $436 per ounce in a single-day trade.

This situation has shaken investors across the world. Mr Shikarpuri said that in Pakistan, gold investors are sitting on the sidelines as they have suffered huge losses, but there might be some fresh investors buying gold in the hope that rates will go up after the war.

In response to a question about the uptick in gold sales due to the marriage season, he said it was still unaffordable for many due to shrinking buying power and economic uncertainty.

“Jewellery buyers had already started to stay away from buying when the gold rate had reached Rs250,000 per tola,” he said.

Chairman of the All Pakistan Jewellers Manufacturers Association, Mohammad Arshad, said the Dubai government was cancelling all future trade deals due to the precarious situation.

He said local markets wore a deserted look as buyers felt that the rate was too high. Even buying a small gold ring has become difficult for many customers, he added.

Published in Dawn, March 24th, 2026