Gold prices in Pakistan fell on Thursday, tracking a decline in the international market as global rates came under pressure after the latest US monetary policy signals.
In the local market, the price of gold per tola dropped to Rs452,963 after a decline of Rs2,300 during the day, according to the latest rates shared by the All-Pakistan Gems and Jewellers Sarafa Association. Similarly, 10-gram gold was sold at Rs387,615, marking a fall of Rs2,070.
A day earlier on Wednesday, gold had inched up slightly to Rs455,236 per tola, showing how quickly sentiment has shifted in the bullion market.
In the international market, gold slipped by $23 to settle at $4,305 per ounce, with a premium of $20 included in the rate. The decline came as investors reacted to fresh signals from the Federal Reserve, which kept interest rates unchanged but delivered a more cautious policy outlook than markets had expected.
The Fed’s updated projections suggested policymakers remain concerned about inflation staying higher for longer. This pushed US Treasury yields higher and strengthened the dollar, both of which tend to weigh on gold prices.
Analysts say gold is now going through a phase of adjustment as markets reassess how long borrowing costs may remain elevated. Higher yields reduce the appeal of gold since it does not offer any return, making other assets more attractive in comparison.
Silver also moved lower in the local market. The price of silver dropped by Rs144 per tola, closing at Rs7,359.
Market watchers note that gold is currently trying to find a stable level after recent sharp swings triggered by the US central bank’s policy update. While selling pressure remains visible, the pace of decline appears to have slowed, suggesting that the market may be entering a short consolidation phase unless fresh global triggers emerge.
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