Gold prices in Pakistan dropped sharply on Tuesday, mirroring losses in the international bullion market as investors kept a close watch on key US inflation data and signals on future interest rate policy.
According to the All Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of gold fell by Rs5,600 per tola to Rs424,136 in the local market.
The price of 10 grams of gold also declined by Rs4,801, settling at Rs363,628.
The latest drop comes a day after gold lost Rs3,800 per tola, when it closed at Rs429,736.
In the global market, the international gold rate was quoted at $4,017 per ounce, including a premium of $20, after declining by $56.
Silver prices also moved lower, with the rate slipping by Rs50 to Rs6,289 per tola in the domestic market.
Gold price in global market
Globally, gold recovered slightly during Tuesday’s trading after touching its lowest level in nearly two weeks earlier in the session. Spot gold rose 0.5 percent to $4,019.50 per ounce, while US gold futures for August delivery gained 0.5 percent to $4,026.20.
Market analysts said the modest rebound was supported by a softer US dollar, which makes gold more affordable for buyers using other currencies.
However, investor attention remained firmly on the release of June’s US Consumer Price Index data and Federal Reserve Chair Kevin Warsh’s congressional testimony, both expected to offer fresh clues about the direction of US monetary policy.
Analysts believe stronger than expected inflation could reinforce expectations that the Federal Reserve will keep interest rates elevated for longer. Higher borrowing costs typically reduce the appeal of non-yielding assets such as gold.
The precious metal had suffered a steep decline in the previous session, marking its biggest daily fall in more than a month amid renewed geopolitical tensions and rising energy prices that fuelled inflation concerns.
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