KARACHI: In a surprising turn of events, gold rates in Pakistan decreased sharply on Monday, with a significant drop of Rs10,400 per tola.
The decline came unexpectedly, especially as market sentiment had been improving following the recent ceasefire agreement between India and Pakistan.
Meanwhile, the Pakistan Stock Exchange witnessed a dramatic rebound. The benchmark KSE-100 Index surged over 10,000 points in early trading, reflecting renewed investor confidence driven by regional de-escalation and fresh financial support from the International Monetary Fund (IMF).
According to the All Pakistan Gems and Jewellers Association, the price of 24-karat gold dropped to Rs340,500 per tola. Similarly, 10 grams of 24-karat gold fell by Rs8,917, now priced at Rs291,923. The rate for 10 grams of 22-karat gold also declined by Rs8,087 to Rs267,693.
Silver prices followed suit, with one tola falling by Rs17 to Rs3,400, and 10 grams decreasing by Rs15 to Rs2,914.
In the international market, gold rates dropped by $104 per ounce, bringing the global price to $3,221 an ounce.
Stock market activity reflected investor optimism, as the KSE-100 Index opened at 117,104.11 points — a gain of 9,929.48 points, or 9.26 percent, triggering a temporary trading halt due to reaching the upper limit.
“The market’s sharp rise today is the result of multiple bullish triggers that swiftly transformed investor sentiment from caution to optimism,” said Sana Tawfiq, Head of Research at Arif Habib Limited.
The rally follows the IMF’s recent approval of a key loan programme review for Pakistan, unlocking $1 billion in funding and greenlighting an additional $1.4 billion bailout, despite objections from India.
“We’re very pleased with today’s performance,” said Ahmed Chinoy, Director of the Pakistan Stock Exchange Limited, as he celebrated the market rebound with brokers.
Tawfiq added that the IMF’s dual approvals not only provided crucial funding but also served as a strong endorsement of Pakistan’s economic reform agenda.
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