PTBP Web Desk
Gold prices in Pakistan witnessed a notable decrease on Wednesday, mirroring the downward movement in international bullion markets. The decline came after a record-breaking rally that had pushed gold to unprecedented highs, prompting investors to cash in profits amid improving global trade sentiment and easing geopolitical tensions.
According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of 24-karat gold per tola dropped by Rs7,538, settling at Rs437,362. Similarly, the 10-gram gold price recorded a fall of Rs6,463, bringing the new rate to Rs374,967.
The fall marks a sharp correction from Tuesday’s stable prices, when gold had traded at Rs444,900 per tola in the local market. The latest trend indicates growing alignment between local and global markets, where bullion has lost momentum following a spectacular run driven by global uncertainty and strong safe-haven demand.
On the international front, spot gold fell by 0.4% to $4,109.19 per ounce as of 0236 GMT. The metal had suffered a steeper loss of more than 5% on Tuesday, marking its largest one-day decline since August 2020. The sudden correction came as investors began to shift their focus toward risk assets amid signs of easing tensions between the United States and China.
The international gold rate, according to APGJSA, stood at $4,150 per ounce (including a premium of $20), reflecting a drop of $85 during the day. The market correction followed months of relentless buying, which had earlier driven the yellow metal up by more than 50% this year.
Meanwhile, U.S. gold futures for December delivery showed a slight recovery, edging 0.4% higher to $4,124.10 per ounce. Market analysts attributed the mixed movement to short-term profit-taking, a strengthening dollar, and anticipation of upcoming U.S. inflation data, which could influence the Federal Reserve’s interest rate outlook.
In Pakistan, the sharp fall in international prices immediately impacted domestic rates, reflecting the country’s dependence on global bullion trends. The local bullion market, which had experienced brisk buying in recent weeks, saw subdued activity as traders and small investors opted to stay on the sidelines, waiting for further price clarity.
According to market observers, the current drop in gold prices in Pakistan may provide some temporary relief to jewelry buyers and investors seeking entry points after months of price hikes. However, analysts caution that volatility may persist in the near term due to fluctuating foreign exchange rates, global inflationary trends, and potential shifts in U.S. monetary policy.
In contrast, silver prices also experienced a downward correction. The per tola price of silver declined by Rs151, settling at Rs5,110, following a similar trend to gold.
The recent correction in gold prices has been linked to a combination of profit-taking and improved global risk sentiment. Hopes for progress in U.S.-China trade discussions, coupled with declining geopolitical tensions in the Middle East, have encouraged investors to reduce holdings in safe-haven assets such as gold.
Additionally, a stronger U.S. dollar has exerted pressure on gold prices, making the metal more expensive for investors holding other currencies. Analysts at Reuters and Bloomberg report that market participants are now closely watching U.S. economic data, particularly inflation and employment figures, to assess whether the Federal Reserve will maintain or adjust its interest rate stance.
You can read more about the latest global economic trends on Bloomberg Markets or follow updates from the All-Pakistan Gems and Jewellers Sarafa Association for daily domestic bullion rates.
