Key Points
- Gold falls Rs 12,627 per tola in Pakistan in line with global market pressure
- International gold rate drops $126 to $4,200 per ounce in latest trading
- Stronger US dollar and rate outlook drive selling pressure in bullion markets
ISLAMABAD: Gold prices in Pakistan recorded a sharp decline on Wednesday, mirroring a steep fall in international bullion rates as global markets reacted to a stronger US dollar and evolving expectations over interest rates.
In the local market, the price of 24-karat gold per tola dropped by Rs 12,627, reflecting a broad adjustment aligned with global benchmarks and currency movements.
In international trade, gold prices slipped by $126 per ounce to $4,200, extending losses as investors reduced exposure to non-yielding assets. The decline came amid renewed strength in the US dollar and shifting expectations that interest rates may remain elevated for longer than previously anticipated.
Market analysts said the pressure on bullion was driven primarily by macroeconomic signals from the United States, including inflation trends and bond yield movements. Higher yields typically reduce the appeal of gold, which does not offer interest returns.
Domestic bullion rates in Pakistan followed international movement, with local pricing influenced by global spot rates and the rupee-dollar exchange rate. Traders said sentiment remained cautious, with volatility expected to continue in the near term.
Despite the downturn, analysts note that geopolitical uncertainty and central bank buying continue to provide structural support for gold prices over the longer horizon.
