Domestic gold prices plunge in line with global bullion rout as investors reassess inflation and interest rate outlooks
KARACHI: Gold prices in Pakistan fell sharply on Monday, tracking a steep global selloff that pushed bullion to a four-month low, market data showed. The decline reflects sustained pressure in international markets, where prices extended losses for a ninth consecutive session.
In local trading, the price of gold per tola dropped by Rs8,100 to Rs491,362, while 10 grams fell by Rs6,945 to Rs421,263. The domestic downturn mirrored global trends as spot gold slid as much as 6.3% to $4,203.21 per ounce, briefly touching its weakest level since Nov. 24.
Gold has now recorded its steepest weekly fall in more than four decades, losing over 10% last week and shedding roughly 25% from its January record high of $5,594.82 per ounce.
Analysts say the persistent decline is driven by shifting global monetary policy expectations, renewed inflation concerns linked to Middle East tensions, and a stronger US dollar. Market strategist Tim Waterer of KCM Trade noted that expectations have shifted from potential rate cuts to possible rate hikes, reducing gold’s appeal as a non-yielding asset.
Other precious metals also declined, with silver, platinum, and palladium posting losses amid broader market volatility. Analysts warn that continued uncertainty and tightening financial conditions could keep pressure on gold prices in the near term.
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