Gold prices in Pakistan fall sharply below Rs 480,000 per tola as global market weakness, US economic signals, and shifting investor sentiment trigger a widespread decline in precious metals.
Gold prices in Pakistan witnessed a notable decline on Monday, slipping below the psychological threshold of Rs 480,000 per tola, as international markets softened amid economic uncertainty and changing interest rate expectations.
According to the All Pakistan Sarafa Association, the price of gold per tola dropped by Rs 3,800, settling at Rs 479,962. The price of 10 grams of gold also fell by Rs 3,257 to reach Rs 411,490, offering some short-term relief to buyers after weeks of record-high levels.
The decline in local bullion prices closely followed global market trends, where spot gold eased by 0.3 percent to around $4,599 per ounce. US futures also edged lower as investors reacted to evolving macroeconomic signals from major economies.
Market analysts attribute the downturn to growing expectations that interest rates in the United States may remain elevated for a longer period. Higher interest rates typically reduce the attractiveness of gold, as the metal does not generate yield compared to interest-bearing investments.
The US Federal Reserve has reinforced this outlook by maintaining its current policy stance and warning that inflation risks remain persistent. This has further strengthened investor caution, prompting a shift toward assets offering better returns in a high-rate environment.
Inflation data has also added pressure on market sentiment. The US Personal Consumption Expenditures (PCE) Index rose by 0.7 percent in March, marking its strongest increase since 2022 and signaling that price pressures in the global economy remain far from contained.
Geopolitical developments are also playing a role in shaping market behavior. Tensions involving the United States and Iran, particularly around the Strait of Hormuz, continue to be closely monitored. Any diplomatic breakthrough or escalation could significantly influence global oil and commodity prices.
Meanwhile, oil prices have remained above $100 per barrel, sustaining inflation concerns and reinforcing expectations that central banks will avoid easing monetary policy in the near term. This broader economic backdrop continues to weigh on precious metals.
Other metals, including silver, platinum, and palladium, also showed mixed performance, reflecting ongoing uncertainty across global financial markets as investors reassess risk and return dynamics.
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