KARACHI: The gold and silver rates plummeted on Friday, with the world gold rate plummeting by a record $355 per ounce to $5,150 per ounce. This marked the biggest single-day drop in five decades for Mr Skikarpuri, president of All Pakistan Sarafa Gems and Jewellers Association (APSGJA).
The 10-gram and one-tola gold (24kt) fell to Rs 460,701 and Rs 537,362 respectively, dropping by Rs 30,435 and Rs 35,500. The silver dropped to Rs 9,489 and Rs 11,069 each, showing a decline of Rs 949 and Rs 1,106.
Spot gold and silver recorded their worst single-day drops in history with gold prices at $4,915.17 per ounce and silver at $90.66 an ounce. The plunging gold price remained unaffordable for many jewellery buyers despite the steep drop. However, investors suffered heavily as prices plummeted.
Gold’s loss was 8.9 percent and silver’s was a staggering 21.92 percent on Friday. These falls were exacerbated by profit-taking, according to analysts such as Suki Cooper of Standard Chartered Bank.
The US dollar index rose 0.7 percent after Donald Trump announced his choice for Federal Reserve Chair Kevin Warsh, making the greenback more expensive for foreign buyers. This coincided with policy uncertainty and rising debt burdens that led some investors to view gold as a strategic portfolio allocation rather than a short-term trade.
In India, gold premiums hit decade-highs due to investment demand, while in China, gains were seen on both jewellery and investment interest.
Spot silver was down 21.92 percent at $90.66 per ounce, falling from its record high of $121.64. Meanwhile, spot platinum dropped by 18 percent to $2,155.73 per ounce and palladium plummeted 13.7 percent to $1,741.36.