Gold prices in Pakistan extended their decline on Wednesday, tracking losses in the international market, where bullion fell for a third consecutive session amid uncertainty over global monetary policy and geopolitical tensions.
In the local market, the price of gold per tola dropped by Rs5,500 to settle at Rs479,562, according to rates issued by the All-Pakistan Gems and Jewellers Sarafa Association. Similarly, the price of 10-gram gold fell by Rs4,715 to Rs411,147, reflecting continued bearish sentiment in the domestic bullion market.
The downward trend followed a sharp decline a day earlier, when gold per tola had fallen by Rs8,900 to close at Rs485,062, indicating heightened volatility in line with global movements.
In the international market, spot gold was down around 1% at $4,550.39 per ounce by midday trading, after hitting a one-month low, Reuters reported. US gold futures also slipped 1% to $4,563.30, as investors remained cautious ahead of the Federal Reserve policy decision. Market sentiment has been shaped by persistent inflation concerns linked to the ongoing Middle East conflict, as well as expectations that the Fed may maintain its current rate stance.
Adnan Agar, Director at Interactive Commodities, noted that gold touched an intra-day low of $4,509 before stabilising near $4,538, with a high of $4,609 during the session. He highlighted that gold has strong support around the $4,450 level, suggesting a potential rebound if the market holds above this threshold.
“If the market breaks this support, prices could fall further into the $4,100-4,200 range, though the probability remains low given the significance of monetary policy decision,” he said. Agar added that external factors, including rising crude oil prices and geopolitical developments, were also influencing market direction.
Recent statements by Donald Trump urging Iran to reach a deal and discussions around prolonged regional disruptions added to uncertainty. Meanwhile, silver prices in the domestic market also declined, falling by Rs45 to Rs7,766 per tola.
Globally, gold demand rose 2% year-on-year in the first quarter, according to the World Gold Council, indicating underlying strength despite short-term price corrections. Analysts believe the near-term trajectory of gold will largely depend on the Fed’s policy signal, with rate expectations continuing to drive investor sentiment in both international and local markets.
The Pakistani rupee inched up to 278.80 against the US dollar in the inter-bank market on Wednesday, compared to 278.81 a day earlier, according to the State Bank of Pakistan.Latest News, Breaking News & Top News Stories | The Express TribuneUsman HanifRead More