Gold prices in Pakistan fell on Wednesday, tracking losses in the international market as global economic signals and geopolitical tensions kept investors cautious.
In the local market, the price of gold per tola dropped by Rs5,500, settling at Rs479,562. Similarly, 10-gram gold was sold at Rs411,147 after a decline of Rs4,715, according to rates shared by the All Pakistan Gems and Jewellers Sarafa Association (APGJSA).
This follows another drop on Tuesday, when the per tola rate slipped by Rs8,900 to close at Rs485,062, showing continued pressure on the precious metal over the past two sessions.
The international gold market also remained under strain. The global price of gold fell by $55 to $4,572 per ounce, including a $20 premium. Spot gold was last seen down 0.3 percent at $4,579.34 per ounce, after touching its lowest level since April 2 in the previous session. US gold futures for June delivery also declined 0.4 percent to $4,592.60.
Analysts say rising oil prices have added to inflation concerns, while investors are closely watching signals from the US Federal Reserve. Fed Chair Jerome Powell’s comments are expected to shape expectations about interest rate policy in the months ahead. The central bank is widely expected to keep rates unchanged in its ongoing meeting, though markets remain alert to any hint of future tightening.
Uncertainty around global geopolitics has also weighed on sentiment. Efforts to ease tensions between the US and Iran appear to have stalled, with reports suggesting disagreements over recent proposals. This has fuelled caution in financial markets already sensitive to inflation risks and interest rate outlooks.
Market experts say higher interest rates typically reduce the appeal of gold, as the metal does not offer returns like interest-bearing assets. However, ongoing inflation concerns linked to energy prices continue to support its long-term demand outlook.
Silver also followed gold’s downward trend, losing Rs45 per tola in the local market to close at Rs7,766.
Despite short-term pressure, global demand for gold has shown some resilience.
According to the World Gold Council, overall demand rose 2 percent year-on-year in the first quarter of 2026, driven mainly by stronger purchases of gold bars, coins, and increased buying by central banks. This offset a 23 percent drop in jewellery demand.
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