Gold prices in Pakistan continued their downward trend on Wednesday, with the precious metal losing another Rs5,200 per tola as weakness in the international market filtered through to local rates.
According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of one tola of gold fell to Rs419,636. The decline came a day after gold had already lost Rs4,100 per tola, showing that the market remains under pressure.
The price of 10 grams of gold also moved lower, dropping Rs4,458 to Rs359,770.
Silver followed the same direction. The price of one tola of silver fell by Rs107 to Rs6,242, reflecting a broader decline across precious metals.
The drop in Pakistan came after international gold prices fell by $52, taking the global rate to $3,972 per ounce, including a premium of $20.
In overseas trading, however, gold managed to recover some ground on Tuesday after touching its lowest level since November. Spot gold was last up 0.3 percent at $4,027.03 per ounce, while US gold futures finished almost unchanged at $4,038.50.
Despite the small rebound, gold remained on course for its biggest quarterly decline in more than 13 years. Prices have fallen more than 11 percent during June, with investors becoming increasingly concerned that inflation could keep interest rates higher for longer.
Market analysts said traders remain uncertain about the outlook for the Middle East after fresh questions emerged over diplomatic efforts to bring lasting stability to the region. At the same time, inflation in the United States has remained above the US Federal Reserve’s target, strengthening expectations that borrowing costs could stay elevated or even rise further.
Higher interest rates generally reduce the appeal of gold because the metal does not provide interest or regular income, making interest-bearing investments more attractive.
Markets are now waiting for key US economic reports, including ADP employment figures and nonfarm payroll data later this week, which could offer fresh clues about the Federal Reserve’s next policy decision.
Meanwhile, a recent survey by the Official Monetary and Financial Institutions Forum (OMFIF) suggested central banks are likely to increase their gold holdings in the coming years, even as some plan to reduce their exposure to the US dollar over the longer term.
Other precious metals also remained under pressure. Platinum and palladium were both heading towards monthly and quarterly losses, while silver, despite a slight recovery in international trading, was also on track for one of its weakest quarters in recent years.
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