Gold prices fall in Pakistan amid global market swings, Middle East uncertainty

KARACHI: Gold prices in Pakistan fell on Wednesday, with the price of a tola declining by Rs3,500 as local bullion markets tracked movements in international markets amid uncertainty over US interest rates and developments in the Middle East.

According to the All Pakistan Sarafa Gems and Jewellers Association, the price of gold fell to Rs483,036 per tola from Rs486,536 recorded on the last trading day.

The price of 10 grams of gold also declined by Rs3,100 to Rs414,125.

Gold prices have remained volatile in Pakistan, with local rates subject to daily fluctuations in international bullion prices, the rupee-dollar exchange rate, and developments in global financial markets.

Meanwhile, gold prices rose Thursday in global markets as concerns over a potential dollar decline and the US budget deficit persisted, while investors awaited a key speech from Federal Reserve Chair Kevin Warsh.

Spot gold gained 0.8% to reach $4,630.09 an ounce, while US gold futures rose 0.7% to $4,685.50.

According to OANDA senior market analyst Kelvin Wong, worries about a weaker dollar and the US budget deficit remain supportive for gold in the medium term.

Prices jumped more than 5% last week after the US Treasury announced an extension of buybacks on older long-term bonds, which deepened concerns about dollar weakness.

Wong noted that markets are awaiting Warsh’s address at the annual Jackson Hole Symposium in Wyoming, with investors keen to see how the Fed will steer monetary policy given current economic conditions.

According to the CME FedWatch tool, markets are pricing in a 36.5% chance of a September rate cut, rising to 72.7% by December.

Separately, data released Wednesday showed US annual inflation for July held steady unexpectedly, staying above the Fed’s 2% target for a 65th straight month.

Gold is widely viewed as a safe-haven asset against geopolitical and economic risk, though higher interest rates can reduce its overall appeal.

Among other precious metals, spot silver rose 1.7% to $69.28, platinum gained 1.1% to $1,848.57, and palladium rose 0.5% to $1,334.49 per ounce.