Gold prices in Pakistan fell on Wednesday, tracking a decline in the international market as global uncertainty kept investors on edge.
According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of gold per tola dropped by Rs8,600 during the day to settle at Rs467,762. Similarly, the rate of 10-gram gold decreased by Rs7,373, closing at Rs401,030.
This comes after a volatile session a day earlier, when gold per tola had climbed by Rs4,600 to reach Rs476,362, reflecting frequent swings in the bullion market.
In the global market, gold also lost ground. The international rate slipped by $86 to $4,454 per ounce, including a $20 premium. Analysts link the decline to shifting investor sentiment as geopolitical tensions and economic expectations continue to move prices in both directions.
Silver prices followed the same trend in the local market, dropping by Rs259 per tola to settle at Rs7,894.
On the international front, spot gold was seen trading lower at $4,471.38 per ounce in early hours, after gaining more than 1 percent in the previous session. US gold futures for August delivery also eased to $4,499.30 per ounce.
Market observers said renewed tensions in the Middle East have added to uncertainty, particularly after reports of missile activity in the Gulf region. At the same time, stalled diplomatic engagement between Washington and Tehran has kept investors cautious.
Despite gold traditionally being seen as a safe-haven asset, recent gains have been limited by expectations around interest rates. Rising oil prices have also fuelled inflation concerns, which in turn affect monetary policy outlooks and reduce the appeal of non-yielding assets like gold.
Experts noted that the direction of gold will likely remain sensitive to both geopolitical developments and upcoming US economic data, which could influence interest rate expectations in the coming weeks.
For now, volatility remains the dominant theme, with both local and global markets reacting quickly to every shift in sentiment.
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