Gold prices recorded extreme volatility in Pakistan and international markets this week, posting historic gains before suffering a sharp correction within days.
In Pakistan, gold surged by more than PKR 42,000 per tola across Wednesday and Thursday. The rally marked one of the largest two-day increases on record. The trend reversed just as quickly. Prices fell by PKR 61,000 per tola over Friday and Saturday, setting a record decline.
Global Gold Prices Retreat
Internationally, gold also dropped sharply. On Saturday, prices fell by USD 255 per ounce, settling at USD 4,895 per ounce. Earlier in the week, gold crossed the USD 5,000-per-ounce threshold for the first time.
Silver and platinum followed a similar pattern. Both metals recorded historic gains before retreating during the same two-day correction. Despite the pullback, prices across precious metals remain well above last year’s levels.
Read: Gold Drops 5%, $3 Trillion Wiped Out Amid Iran-US Tensions
What Drove the Surge Gold Price?
Market experts point to three main drivers behind the surge:
1. US Trade Policy Uncertainty
Analysts cite Donald Trump’s trade policies as a key trigger. Policy uncertainty increased market anxiety and pushed investors toward safe-haven assets such as gold.
2. Global Political Tensions
Ongoing geopolitical risks across multiple regions continued to support demand for precious metals during the rally.
3. Central Bank Buying
Large-scale gold purchases by central banks worldwide added further upward pressure to prices.
The recent correction reflects easing political signals from the United States, which reduced immediate risk sentiment. However, analysts say volatility may persist as markets respond to policy signals, geopolitical developments, and central bank activity.
