Gold prices in Pakistan fell sharply on Wednesday, plunging by 4,100 rupees per tola to extend significant losses from the previous session. According to the All Pakistan Gems and Jewelers’ Association, the local bullion market closely tracked a steep international downturn driven by a robust US dollar and surging Treasury yields. Consequently, the price of 24-karat gold in the domestic market settled at 424,836 rupees per tola, while the price for 10 grams decreased by 3,515 rupees to trade at 364,228 rupees.
Meanwhile, local silver prices defied the downward trend of the broader precious metals market by posting modest gains. The domestic price of silver rose by 25 rupees to reach 6,349 rupees per tola, while the price for 10 grams increased by 22 rupees to hit 5,443 rupees. This upward movement mirrored a subtle uptick in the international market, where spot silver edged up to trade at 58.70 dollars per ounce.
Furthermore, global market analysts attributed the commodity rout to macroeconomic headwinds that increased the opportunity cost of holding non-yielding bullion. Investors faced intense pressure following hawkish signals from US Federal Reserve officials, who indicated that interest rates could rise further if inflation persists. Therefore, financial markets are currently pricing in an estimated 67 percent probability of a rate hike, causing traders to pivot their attention toward upcoming employment data.
Ultimately, local jewelry dealers noted that these back-to-back contractions in gold prices reflect a direct response to this bearish international environment. While gold traditionally serves as a critical safe-haven asset and inflation hedge within Pakistan, domestic rates remain tightly tethered to global benchmarks and currency fluctuations. Investors continue to monitor the market closely as international spot gold fluctuates near its lowest levels since last November.
