Gold prices in Pakistan fell again on Wednesday, tracking a third straight decline in the international market. Silver also dropped, while the rupee posted a slight gain against the US dollar in inter-bank trade.
ISLAMABAD: Gold prices in Pakistan fell further on Wednesday, mirroring continued weakness in the international bullion market, where prices declined for a third straight session amid uncertainty surrounding global monetary policy and geopolitical tensions.
According to rates issued by the All-Pakistan Gems and Jewellers Sarafa Association, the price of gold in the local market dropped by Rs5,500 per tola to Rs479,562. The price of 10 grams of gold also decreased by Rs4,715, settling at Rs411,147.
The latest decline came a day after a sharper fall in the domestic market, when the per-tola price had dropped by Rs8,900 to close at Rs485,062, reflecting continued volatility in line with movements in global markets.
In the international market, spot gold was down around 1% at $4,550.39 per ounce by midday trading after touching a one-month low, according to Reuters. US gold futures also slipped 1% to $4,563.30 as investors stayed cautious ahead of the US Federal Reserve’s policy decision.
Market sentiment has been influenced by persistent inflation concerns linked to the ongoing Middle East conflict, along with expectations that the Federal Reserve may keep its current interest rate stance unchanged.
Adnan Agar, Director at Interactive Commodities, said gold touched an intra-day low of $4,509 before recovering near $4,538, after reaching a high of $4,609 during the session.
He said the metal had strong support around the $4,450 level, which could help prices recover if that threshold holds.
Agar added that external developments, including higher crude oil prices and geopolitical events, were also shaping the market’s direction. He said recent statements by Donald Trump urging Iran to reach a deal, along with discussions about prolonged regional disruptions, had added to uncertainty.
Silver prices also moved lower in the domestic market, falling by Rs45 to Rs7,766 per tola.
Despite the recent correction, global gold demand rose 2% year-on-year in the first quarter, according to the World Gold Council, suggesting underlying strength in the market even as prices face short-term pressure.
Rupee edges up in inter-bank trade
Separately, the Pakistani rupee posted a marginal gain against the US dollar in the inter-bank market on Wednesday. According to the State Bank of Pakistan, the rupee closed at 278.80 against the dollar, compared with 278.81 a day earlier.
Analysts said the near-term direction of gold prices would largely depend on the Federal Reserve’s policy signal, with interest rate expectations continuing to influence investor sentiment in both international and domestic markets.
