Gold prices in Pakistan fell sharply on Friday, retreating from record levels reached a day earlier as volatility gripped the bullion market. The price of gold per tola dropped by Rs. 35,500 to Rs. 537,362, according to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA).

Likewise, the price of 10 grams of gold declined by Rs. 30,435 to Rs. 460,701.

The pullback came after gold surged to an all-time high of Rs. 572,862 per tola on Thursday, following a single-day increase of Rs. 21,200, underscoring heightened uncertainty and rapid price movements.

Internationally, gold also came under pressure. The global rate slipped by $355 to $5,150 per ounce, including a $20 premium.

Silver prices mirrored the downturn, with silver per tola falling by Rs. 1,106 to Rs. 11,069 in the domestic market.

Global markets saw profit-taking as gold slid more than 4 percent on Friday amid speculation that the US Federal Reserve could appoint a more hawkish chair. The move prompted investors to lock in gains after a powerful rally.

Despite the decline, bullion remains on track for its strongest monthly performance since 1980. Spot gold was down 3.9 percent at $5,183.21 per ounce as of 0323 GMT, after dropping as much as 5 percent earlier in the session.

Gold prices have gained over 20 percent in January, marking a sixth straight monthly increase and the largest monthly advance in more than four decades, as investors continued to seek safety amid geopolitical and economic uncertainty.

Meanwhile, US gold futures for February delivery slipped 2.7 percent to $5,176.40 per ounce.