Gold slides in Pakistan after staying flat at record peak

KARACHI: Gold prices in Pakistan slipped on Thursday, tracking a decline in the international market, only a day after remaining flat at record levels.

According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of 24-karat gold per tola fell by Rs2,000 to settle at Rs396,800. The 10-gram rate also dropped by Rs1,714 to Rs340,192. On Wednesday, prices had remained steady at an all-time high of Rs398,800 per tola.

The international market also saw a downward trend, with gold priced at $3,750 per ounce (including a $20 premium), reflecting a loss of $20. Meanwhile, silver bucked the trend in the local market, with its per tola rate climbing by Rs26 to Rs4,663.

Global market movements

Globally, investors kept a close eye on US economic data that could signal the Federal Reserve’s next policy move. A softer dollar, which edged down 0.1%, made bullion more attractive to international buyers.

Spot gold was trading at $3,734.04 per ounce in early trade (0202 GMT), while US gold futures for December delivery held at $3,765.20. Later in the day, as demand for safe-haven assets picked up amid global uncertainty, spot gold gained 0.6% to $3,756.29 per ounce, while futures rose 0.5% to $3,787.

Gold has recently been on a volatile path, reaching a record high of $3,790.82 earlier this week. Analysts say rising geopolitical tensions, along with concerns over US fiscal stability and trade disputes, are pushing investors towards the yellow metal.

“Investors don’t see enough fiscal stability on the US side and, if you consider the trade war, tensions with Russia and unrest in the Middle East, it’s easy to understand why gold is surging,” said Carlo Alberto De Casa, analyst at Swissquote.

Fed’s stance adds to uncertainty

Adding to the market’s uncertainty, San Francisco Federal Reserve Bank President Mary Daly voiced her support for more rate cuts, while Fed Chair Jerome Powell maintained a more cautious approach. Market watchers believe upcoming economic indicators will play a key role in determining the Fed’s trajectory.

Political statements have also added fuel to gold’s appeal. US President Donald Trump recently suggested that Ukraine could retake all territory held by Russia, reigniting concerns over a prolonged conflict in Eastern Europe.

September’s wild ride

September has been a dramatic month for gold prices in Pakistan, with repeated record highs and sharp pullbacks. The month opened with gold hitting Rs370,700 per tola on September 1. By September 23, it had surged to Rs398,800, the highest level ever recorded in the local market.

The upward rally has largely mirrored global trends, where gold touched fresh peaks on expectations of rate cuts, rising geopolitical tensions, and increased demand for safe-haven assets.

Even with Thursday’s decline, the yellow metal remains close to historic highs, keeping jewellers and investors alert for what may come next.

Read next: Pakistan’s pharmaceutical exports hit two-decade high at $457m