Gold prices in Pakistan experienced a steep decline on Wednesday, with 24-carat gold falling by Rs11,300 per tola to reach Rs454,036, the All Pakistan Gems and Jewellers’ Sarafa Association (APGJSA). Similarly, the price of 10-gram gold dropped by Rs9,688 to Rs389,262.
This sharp decrease followed a previous fall of Rs800 per tola on Tuesday. The precious metal was priced at Rs465,336 per tola on Tuesday, marking a cumulative reduction of Rs11,300 over the last two trading sessions in the local market.
The downward trend in domestic gold prices coincided with a significant fall in international bullion markets. Globally, spot gold traded near $4,303 per ounce on Wednesday, down approximately 0.6 percent, hitting its lowest level in over three weeks. Meanwhile, US gold futures for December delivery declined by about 1 percent to $4,351 per ounce.
The international price drop was influenced by a stronger US dollar and heightened expectations of increased interest rates. These factors were further intensified by escalating tensions in the Middle East, which pushed oil prices higher and raised inflation concerns. Investors are also closely monitoring upcoming US economic data, including August’s employment figures, for indications of the Federal Reserve’s future monetary policy.
Gold prices have been under pressure recently after Federal Reserve officials suggested that interest rates might remain elevated for an extended period. Since gold does not yield interest, a stronger dollar and rising interest rate expectations typically exert downward pressure on its price.
In Pakistan, the bullion market generally mirrors international gold price movements, while domestic rates are also affected by the rupee-dollar exchange rate and local demand dynamics. The recent decline continues a sharp correction in local gold prices, which had already fallen by Rs1,800 per tola on Monday, followed by the Rs800 drop on Tuesday.
