Gold prices in Pakistan experienced a strong rebound on Thursday, with the cost of 24-carat gold rising by Rs11,200 per tola. This surge reversed most of the steep decline seen the previous day, as international bullion prices also showed signs of recovery.
The All Pakistan Gems and Jewellers Sarafa Association (APGJSA) reported that the price for 24-carat gold climbed to Rs465,236 per tola, up from Rs454,036 on Wednesday. Similarly, the price of 10 grams of gold increased by Rs9,602, reaching Rs398,864 compared to Rs389,262 the day before.
This sharp recovery followed a significant drop in domestic gold prices, which had fallen by Rs11,300 per tola on Wednesday. The international market mirrored this trend, with spot gold rising 0.9 percent to $4,425.83 per ounce. Factors contributing to this included a weaker US dollar and declining US Treasury yields, which bolstered the appeal of the precious metal.
Gold had dipped to nearly a one-month low on Wednesday but rebounded by more than one percent as the dollar and Treasury yields eased from recent highs. The rebound coincided with investors shifting attention toward the upcoming US non-farm payrolls report scheduled for Friday. Expectations around US interest rate policies continue to be a major influence on gold prices.
As a non-yielding asset, gold tends to lose appeal when higher interest rate expectations push bond yields and the US dollar upward. Conversely, softer yields and a weaker dollar enhance gold’s attractiveness to investors.
The local market’s sharp turnaround on Thursday largely offset the previous day’s losses. On Wednesday, 24-carat gold had dropped Rs11,300 per tola to Rs454,036, while 10 grams declined by Rs9,688 to Rs389,262. This decline followed an earlier Rs800 per tola fall on Tuesday when gold was priced at Rs465,336 per tola, resulting in a cumulative loss of Rs11,300 over two sessions before Thursday’s recovery.
This volatility underscores the sensitivity of Pakistan’s gold market, which is influenced not only by international bullion prices but also by fluctuations in the rupee and domestic market dynamics. On Thursday, international gold traded above $4,400 an ounce as market participants closely monitored US economic data and Federal Reserve interest rate expectations.
The precious metal remains highly responsive to shifts in forecasts regarding the US central bank’s policy decisions, particularly as investors evaluate inflation, employment, and overall economic growth figures. For Pakistani buyers and investors, future movements in international bullion prices and the rupee-dollar exchange rate are expected to remain critical factors shaping local gold rates in the near term.
