Gold Hits One-Year Low as Precious Metals Slide

Pakistan gold Rates down Rs 15600 in last two days. It closed at Rs 410,036 on Saturday while silver rates also closed down to Rs 5300.

Gold prices plunged to a one-year low on Friday, while silver, platinum and palladium extended their losses as a sharp sell-off in technology stocks triggered concerns across global financial markets.

According to trading economic website, spot gold closed down 3.6% to $3,875.84 per ounce. It is the lowest level since October 2025. Meanwhile, silver prices fell 6.5% to $48.90 an ounce, breaking below the $50 mark for the first time in 11 months.

Pakistan Gold and Silver Prices

Pakistan gold Rates down Rs 15600 in last two days. It closed at Rs 410,036 on Saturday while silver rates also closed down to Rs 5300.

According to Reuters, the latest decline in precious metals followed a sharp downturn in technology shares. Investors are increasingly questioning whether major spending on artificial intelligence will deliver the earnings growth needed to justify high market valuations.

Independent metals trader Tai Wong described the market environment as extremely challenging, warning that precious metals could struggle to avoid the impact of a broader stock market correction.

Gold Falls 30% From January Record High

Gold has experienced a significant correction after reaching a record high of $5,595 per ounce in January 2026. The metal has now lost approximately 30% of its value from that peak.

Expectations that interest rates will remain higher for longer, combined with weaker demand in Asian markets, have contributed to the decline.

Despite the recent weakness, analysts believe central bank demand could strengthen whenever gold prices fall below $4,000 per ounce.

Central bank purchases have been an important source of support for gold in recent years, helping distinguish it from other precious metals.

Silver Prices Break Below $50

Silver experienced an even sharper decline than gold, falling 6.5% to $49 per ounce on Friday. The metal has faced growing pressure from concerns about industrial demand, particularly as investors reassess the economic outlook and the sustainability of technology-related growth.

HSBC warned that industrial and jewellery demand for silver is weakening. The bank forecasts an average silver price of $64 per ounce in 2027, compared with its average forecast of $71 for 2026.

Platinum and Palladium Hit Multi-Month Lows

Platinum and palladium also suffered significant losses as concerns about demand from the automotive industry weighed on prices.

Platinum fell 4.2% to $1,425.02 per ounce, reaching its lowest level in 13 months.

Palladium declined 3% to $976.08 per ounce, falling below the psychologically important $1,000 level for the first time in the reported period. It also touched a 17-month low.

Meanwhile, the gold-to-platinum ratio climbed to 2.7, its highest level since mid-2025.

Unlike gold, platinum and palladium have limited support from central bank purchases and traditional safe-haven investment demand. Their prices are more closely influenced by industrial consumption, particularly in the automotive sector.

Precious Metals Outlook: Will Gold and Silver Recover?

The outlook for precious metals remains uncertain as investors assess technology sector earnings, interest rate expectations and global industrial demand.

Gold could receive renewed support if central banks increase purchases as prices move below $4,000 per ounce. However, persistent interest rate concerns and weak Asian demand could continue to limit its recovery.

Silver faces additional challenges because of its exposure to industrial and jewellery demand. Platinum and palladium may also remain under pressure if automotive demand weakens.

Although the three white metals have entered deeply oversold territory, technical indicators alone cannot confirm a market reversal. For now, investors are closely watching technology stock performance, central bank activity and interest rate expectations for signals about the next direction of precious metals prices.

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