Gold prices in Pakistan declined by Rs1,800 per tola on Monday, mirroring a broader international sell-off driven by rising United States Treasury yields and geopolitical tensions. The new domestic rate for 24-karat gold stands at Rs522,762 per tola.
The latest retreat compounds heavy losses from the previous trading session, where local rates plummeted by Rs8,700 per tola on Saturday. The All-Pakistan Gems and Jewellers Sarafa Association (APGJSA) reported the parallel 10-gram gold rate decreased by Rs1,543 to settle at Rs448,184.
International Pressures Drive Domestic Sell-Off
The domestic pricing adjustments reflect a sharp downturn in the international bullion market. Spot gold declined by $18 on Monday to hit $5,000 per ounce, with a standard $20 premium applied within the Pakistani market. The non-yielding asset faces intense downward pressure as surging energy prices temper market expectations for near-term Federal Reserve interest rate cuts.
The shifting monetary outlook, coupled with a stronger US Dollar and US Treasury yields surging to 4.27 percent, has fueled a broader market retreat as investors navigate the ongoing Middle East oil shock and the escalating US-Iran conflict entering its second week. Uncertainty surrounding major energy disruptions, including potential operations targeting Iran’s Kharg oil terminal, has triggered stagflation fears across global exchanges.
Silver Rates Follow Downward Trend
Industrial and precious metals broadly contracted across local markets alongside gold. Silver rates experienced a minor dip on Monday, dropping by Rs100 to reach Rs8,441 per tola.
Financial analysts across major outlets indicate an overarching “sell on rise” sentiment currently dominates commodities trading. Markets continue to price in prolonged geopolitical instability and the likelihood of sustained higher interest rates.