Gold prices saw a sharp decline both globally and in Pakistan, following a sustained rally that drove the precious metal to record levels in recent days.

In the international bullion market, the price of gold dropped by $116 per ounce to settle at $3,338, reversing part of the recent surge driven by geopolitical tensions and safe-haven buying.

The domestic market swiftly mirrored the downturn.

The price of gold in Pakistan fell by Rs11,700 per tola, bringing the rate down to Rs352,000.

The price of 10 grams dropped by Rs10,031 to Rs301,783, according to data released by local traders.

Dealers attributed the decline to increased selling pressure following multiple sessions of heightened buying activity, with many investors opting to take profit amid volatile trends.

Previously, according to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of 24-karat gold surged by Rs5,900 per tola, reaching a historic high of Rs363,700 in the local market. The price of 10 grams of gold also jumped significantly, climbing Rs5,059 to settle at Rs311,814.

This follows a sharp increase on Monday when gold prices per tola rose by Rs8,100 to hit the then-record high of Rs357,800.

Internationally, gold prices also scaled new heights. APGJSA reported the global rate at $3,454 per ounce on Tuesday — including a $20 premium — marking a daily gain of $59.

Commenting on the development, Adnan Agar, Director at Interactive Commodities, noted that gold touched a peak of $3,500 in the international market before retreating to $3,426. “The market is now $75 below its intraday high, signalling the potential for an even bigger correction,” he said.

“If prices dip below $3,400, further downward movement is likely. Otherwise, a rebound could be on the cards. Today’s closing price will be crucial in determining the near-term trend.”