Gold Prices Fall in Pakistan as Global Market Weakens

KARACHI (Web Desk)  – Gold prices in Pakistan witnessed a notable decline as global bullion markets softened, offering slight relief to buyers after recent record highs.

According to the All Pakistan Sarafa Association, the price of gold per tola decreased by Rs 3,800, bringing it down to Rs 479,962. Similarly, the price of 10 grams of gold fell by Rs 3,257 to settle at Rs 411,490.

The domestic downturn reflects broader weakness in international markets, where gold prices have edged lower amid persistent inflation concerns and uncertainty surrounding United States monetary policy.

In global trading, spot gold slipped by 0.3 percent to around $4,599 per ounce, while US futures also registered a marginal decline. Market analysts say investors are adopting a cautious stance as expectations grow that interest rates will remain elevated for a longer period.

Higher interest rates generally reduce the attractiveness of gold, as the metal does not yield interest returns, prompting investors to shift toward assets offering better income potential. The US Federal Reserve has reinforced this sentiment by maintaining its current policy stance while warning that inflation risks remain elevated.

Geopolitical tensions are also contributing to market volatility, particularly ongoing developments involving the United States and Iran in the Strait of Hormuz region. Investors are closely watching the situation, as any diplomatic breakthrough could influence both oil prices and broader market stability.

Oil prices continue to hover above $100 per barrel, adding inflationary pressure and reinforcing expectations that central banks may avoid easing monetary policy in the near term.

Recent economic data has further highlighted inflation concerns, with the US Personal Consumption Expenditures (PCE) Index rising by 0.7 percent in March — its highest level since 2022 — signaling persistent price pressures in the global economy.

Meanwhile, other precious metals including silver, platinum, and palladium showed mixed performance, reflecting continued uncertainty across global financial markets.