KARACHI:
Gold prices in Pakistan remained unchanged on Tuesday despite a dramatic and long-expected fall in the international market, where the precious metal was on track for its steepest daily drop in nearly five years.
The local market stayed resilient, with gold selling for Rs444,900 per tola and Rs381,430 per 10 grams, according to the rates issued by the All-Pakistan Gems and Jewellers Sarafa Association. The international impact is likely to reflect in Pakistan on Wednesday.
A day earlier, gold had declined by Rs1,400 per tola, settling at the current level. The stability in domestic prices contrasts sharply with the global market, where bullion tumbled nearly $300 per ounce as investors locked in profits after a record-setting rally.
Spot gold was down 5.5% to a one-week low at $4,115.26 per ounce as of 01:45 am EDT (1745 GMT), its steepest fall since August 2020. US gold futures for December delivery settled 5.7% lower at $4,109.10 per ounce.
Adnan Agar, Director at Interactive Commodities, said gold faced a long-awaited correction after weeks of sustained gains, driven by expectations of US interest rate cuts and strong safe-haven demand.
“Gold touched an all-time high earlier today (Tuesday) – well, technically last night – at around $4,381, before plunging to $4,080, and was later trading near $4,115,” he said. “This represents a massive $300 drop, marking one of the steepest intra-day declines in years.”
Agar added that the correction was overdue and that such volatility is not unusual after a rapid rally. “The next key support levels are around $4,050 and $4,000. If those levels are breached, prices could fall further to $3,800 and even $3,600,” he noted. “There could be short-term recoveries towards $4,200, but overall the market is likely to remain weak and range bound for the next one to two months.”
He emphasised that investors should watch for cues from the upcoming US monetary policy meeting next week, which could influence global gold sentiment. “Unless the Federal Reserve delivers a major surprise, we may not see a new high in the near term,” Agar added.
Gold’s recent volatility reflects the shifting global outlook on inflation, interest rates, and safe-haven flows, with Pakistan’s local market showing temporary calm amid broader international turbulence.
Meanwhile, the Pakistani rupee registered a slight uptick against the US dollar in the inter-bank market on Tuesday. According to the State Bank of Pakistan (SBP), the local currency closed at 281.06 per dollar, marking a minor appreciation of Rs0.01 compared to the previous day’s close at 281.07.
