Sharp decline in global bullion prices pushes gold and silver lower in Pakistan as investors react to fresh military escalation and interest rate concerns.
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Gold and silver prices fell sharply in both international and local markets on Wednesday, reversing recent gains as renewed military tensions between the United States and Iran weighed on investor sentiment.
According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of gold in Pakistan dropped by Rs12,627 per tola, settling at Rs442,436. The price of 10 grams of gold declined by Rs11,364 to Rs378,170.
Silver prices also recorded notable losses. The price of silver per tola fell by Rs385 to Rs6,929, while 10 grams of silver dropped by Rs352 to Rs5,893.
In the international market, spot gold fell 2.1% to $4,172.44 per ounce, its lowest level since March, while US gold futures for August delivery slipped to $4,195.60.
The decline came after Iran’s Revolutionary Guards claimed missile and drone attacks on US military facilities in Jordan, Kuwait, and Bahrain in response to recent American strikes near the Strait of Hormuz. The escalation renewed concerns about inflation, energy prices, and the possibility of higher interest rates.
Analysts noted that while gold is traditionally viewed as a safe-haven asset during geopolitical uncertainty, expectations of tighter monetary policy and rising interest rates can reduce its appeal because it does not generate income.
Investors are now closely watching upcoming US inflation data, including the Consumer Price Index (CPI) and Producer Price Index (PPI), for clues about the Federal Reserve’s next policy move.
Other precious metals also moved lower, with spot silver declining 2.1%, platinum falling 3.1%, and palladium slipping 0.4%.
The latest drop follows a brief rebound on Tuesday, when gold and silver prices had risen after several days of losses in both local and international markets.
