Bullion drops sharply in Pakistan and abroad amid stronger dollar and uncertainty over US interest rates.
Image: MarketWatch
Gold prices declined in both local and international markets on Wednesday as investors reacted to shifting interest rate expectations and ongoing geopolitical tensions in the Middle East.
In Pakistan, the price of gold per tola fell by Rs8,600 to Rs467,762, while 10-gram gold dropped by Rs7,373 to Rs401,030, according to the All-Pakistan Gems and Jewellers Sarafa Association. Silver prices also eased, falling by Rs259 per tola to Rs7,894.
The international market also saw weakness, with spot gold slipping nearly 1% to $4,440.99 per ounce and US gold futures falling 1.2% to $4,466.90. Analysts said expectations of prolonged inflation and delayed US rate cuts have reduced demand for bullion, which typically struggles in high interest-rate environments.
A stronger US dollar added further pressure, making gold more expensive for international buyers. Despite ongoing geopolitical tensions that normally support safe-haven demand, market sentiment remained mixed as traders weighed inflation risks against tighter monetary policy expectatio
