- Gold per tola falls by Rs43,600, reaching Rs447,762.
- Ten grams of gold declines from Rs37,380 to Rs383,883.
- Silver, platinum, and palladium also fall sharply worldwide.
The country has witnessed an unprecedented decline in gold prices on Monday, making the largest single-day drop on record following a significant fall in the international market.
The price of gold per tola fell sharply by Rs43,600, bringing it down to Rs447,762. Similarly, the price of 10 grams of gold decreased by Rs37,380, settling at Rs383,883.
Gold prices also registered a significant fall in the international market, dropping by $436 to $4,250 per ounce.
Market analysts noted that this is the steepest one-day decline in gold prices ever recorded. Overall, the price of gold per tola has now dropped by approximately Rs125,000 from its all-time high.
Stronger dollar
After logging its biggest weekly loss in about 43 years, gold tumbled more than 8% at one point on Monday, hitting a four-month low, Reuters reported.
Investors rushed to unwind positions amid a strengthening dollar and rising expectations of US interest rate hikes.
Spot gold declined 4.9% to $4,266.47 per ounce by 1017 GMT, extending losses into a ninth straight session. It had shed more than 8% to $4,097.99 earlier in the session to its lowest level since November 24.
The precious metal has fallen about 22% since the Middle East conflict began on February 28, and has retreated about 25% from its record peak of $5,594.82 reached on January 29.
US gold futures for April delivery dropped 6.7% to $4,267.50.
The dollar and benchmark 10‑year US Treasury yields rose, pressuring gold prices.
While gold is traditionally viewed as a hedge against inflation, rising energy prices due to the Iran war have raised the prospect of higher interest rates, dimming non-yielding bullion’s appeal.
“Markets no longer see any Fed rate cuts this year and have started pricing in chances of hikes, boosting the US dollar and compounding bullion’s weakness,” said Nikos Tzabouras, senior market analyst at Jefferies-owned Tradu.com.
“Meanwhile, gold also falls victim to a search for cash and a rotation into energy commodities.”
Market bets on a US rate hike this year have surged, with futures now implying the Federal Reserve is likelier to raise rates than cut them by the end of 2026, according to CME’s FedWatch tool.
Gold’s fall to its lowest level since November has seen it return to its 200-day moving average.
However, some analysts say the broader trajectory for gold could remain positive, with the metal up about 42% on a one-year basis.
“Once the dust settles and the current wave of forced selling runs its course, the outlook for gold in particular may improve again quite sharply,” said Ole Hansen, head of commodity strategy, Saxo Bank, in a note.
Other precious metals also declined sharply, with spot silver declining 5.5% to $64.01 per ounce and platinum slipping 7.2% to $1,783.30. Both metals earlier hit their lowest levels since mid-December.
Palladium shed 2.1% to $1,374.73.
— With additional input from Reuters
