How did prices of gold and silver fall from the sky to the ground?

KARACHI: How did the prices of gold and silver, which reached the seventh sky, fall drastically in three months? How much cheaper will it be? An important analysis has come to light.

The prices of gold and silver, which were touching the seventh sky at the beginning of this year, fell so much in just three months that everyone is surprised.

In the first quarter of this month, the global price of gold was $5,500 per ounce, while in Pakistan it had exceeded 500,000 per tola. Now it has reached $4,000 per ounce globally and 419,000 in Pakistan. Similarly, silver, which had reached a high of Rs12,000 per tola locally, has now come close to 6,000.

Why did the prices of gold and silver suddenly increase and then decrease? Talking to host Kamran Khan on ARY News’ program On My Radar, CEO Topline Securities Mohammad Sohail explained the reasons for this.

Why did the prices of gold and silver decline so much in three months?

Mohammad Sohail said that two or three years ago, the price of gold was $2,000 per ounce. In early 2026, it was $5,500 and now it has fallen to $4,000.

He said that the sudden significant decline in the prices of gold and silver is due to the Iran war and global inflation. Along with this, interest rates are expected to increase worldwide, including the United States, due to which people have withdrawn capital from gold and silver and invested it in fixed income. The dollar is also stabilizing now, so people are selling gold and silver and buying dollars in droves.

Muhammad Sohail also linked the decline in gold prices to the war situation in the Middle East and said that investors knew that oil prices would now increase, so to take advantage of this, they withdrew money from gold and silver and invested it in the oil and fertilizer sectors.

How did the prices of gold and silver reach the seventh sky?

Explaining the reason for this, the expert analyst said that when digitalization started after Covid-19, a large number of new generations came into this field, whose decisions are based on unrealistic advice from social media or AI.