Gold prices in Pakistan fell for a second straight session on Wednesday, mirroring weakness in the international bullion market as investors adopted a cautious stance ahead of the US Federal Reserve’s latest monetary policy announcement.
According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of 24-karat gold dropped by Rs1,000 per tola to Rs426,436. The price of 10 grams of gold also declined by Rs857 to Rs365,600. The latest fall follows Tuesday’s sharp decline of Rs4,300 per tola, indicating continued pressure on the local bullion market.
In the international market, gold was priced at $4,040 per ounce, including a premium of $20, after losing $10 during the day. However, spot gold edged 0.3 percent higher in early trading to $4,040.63 per ounce, supported by a weaker US dollar, while US gold futures were little changed at $4,038.90.
Analysts said the Federal Reserve’s interest rate decision later on Wednesday is likely to determine the near-term direction of gold prices. A softer dollar has made the precious metal more affordable for buyers using other currencies, but expectations around US monetary policy remain the main driver of market sentiment.
According to the FedWatch tool, markets see a 68 percent chance that the Fed will leave interest rates unchanged, while the probability of a 25-basis-point hike stands at 32 percent. Investors are also pricing in a strong likelihood of another rate increase in September. Gold is often viewed as a hedge against inflation, but higher interest rates reduce its appeal because it does not offer returns like interest-bearing assets.
Meanwhile, silver bucked the trend in Pakistan, rising by Rs68 per tola to Rs6,291. In international trading, spot silver gained 1.6 percent to $58.08 per ounce, while platinum and palladium both slipped 0.4 percent.
Geopolitical tensions in the Middle East also remained in focus after the United States said it intercepted ballistic missiles launched by Iran towards US forces in the region. Despite these developments, investor attention remained firmly on the Fed’s policy outlook, which is expected to shape the next move in global precious metal prices.
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