Gold prices in Pakistan edged higher on Wednesday, recovering some of the previous session’s losses as international bullion prices remained above the $4,000 per ounce mark.
According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of gold rose by Rs900 per tola to settle at Rs425,036. The rate for 10 grams also increased by Rs771, taking it to Rs364,399.
The latest gain comes a day after the local market saw a sharp fall, when gold lost Rs5,600 per tola to close at Rs424,136.
In the international market, gold was quoted at $4,026 per ounce, including a premium of $20, reflecting a $9 increase from the previous rate used by local traders.
Silver prices, however, remained unchanged at Rs6,289 per tola.
Despite the higher benchmark price used in Pakistan, global gold prices eased during Wednesday’s trading after a strong rally in the previous session.
Gold in international market
Spot gold slipped 0.7 percent to around $4,025 per ounce, while US gold futures for August delivery fell 1 percent to about $4,030. The precious metal had surged above $4,100 per ounce on Tuesday after softer than expected US inflation data boosted expectations that price pressures were easing.
Analysts said investor focus has now shifted from inflation figures to rising geopolitical tensions in the Middle East. Oil prices climbed for a third straight session after US President Donald Trump reimposed a naval blockade on Iranian ports and warned of further action if Tehran does not return to negotiations.
Higher oil prices have renewed concerns about inflation, reducing expectations for lower US interest rates. Since gold does not pay interest, it often becomes less attractive when borrowing costs are expected to remain high.
Markets are now waiting for the latest US Producer Price Index data, which could provide fresh clues about the Federal Reserve’s next policy move. Traders have lowered expectations for a September rate cut compared with earlier forecasts, while still anticipating easing later in the year.
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