Gold prices in Pakistan dropped sharply on Wednesday, tracking losses in the international market and ending the brief stability seen a day earlier.
In the local market, the price of gold fell by Rs6,800 per tola, bringing it down to Rs470,362. The rate for 10 grams also moved lower, declining by Rs5,830 to settle at Rs403,259, according to figures shared by the All-Pakistan Gems and Jewellers Sarafa Association.
A day earlier, on Tuesday, gold prices had remained unchanged at Rs477,162 per tola, offering some relief to buyers before the latest fall.
The decline came as global gold prices weakened. In the international market, gold lost $68 per ounce, reaching around $4,480 with an added premium of $20. During early trading hours, prices hovered near a one-and-a-half-month low, reflecting pressure from broader economic factors.
Global pressure weighs on gold
Analysts say rising US Treasury yields and a stronger dollar have reduced the appeal of gold, which does not offer any yield. When interest rates stay high, investors often shift towards assets that provide returns, making gold less attractive.
The dollar remained close to a six-week high, which made gold more expensive for buyers using other currencies. At the same time, benchmark US bond yields stayed near their highest level in over a year, further weighing on demand for bullion.
Market sentiment has also been shaped by mixed signals from the US on its stance towards Iran. While there are signs of progress in talks, uncertainty remains, keeping investors cautious.
Expectations around US interest rates are another key factor. Most economists believe the Federal Reserve is unlikely to cut rates this year, with some now pushing forecasts for easing into 2027. Investors are closely watching for fresh cues from the Fed’s latest policy meeting minutes.
Meanwhile, silver prices in Pakistan also moved lower. The rate fell by Rs125 per tola to Rs7,974, reflecting the broader trend in precious metals.
Despite the drop, traders say gold remains sensitive to global developments, and prices could continue to shift in the coming days depending on interest rate signals and geopolitical updates.
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