Gold prices in Pakistan declined on Tuesday, tracking a parallel dip in international markets as investors adopted a cautious stance in response to fresh US inflation data and trade policy uncertainty.
According to the All Pakistan Sarafa Gems and Jewellers Association, gold price per tola dropped by Rs700, settling at Rs359,000, while the rate for 10 grams fell by Rs600, now standing at Rs307,784.
The fall follows a sharp gain of Rs1,600 recorded a day earlier, reflecting high volatility amid global economic signals.
🌍 International Market Trends
Spot gold declined by 0.2% to $3,336.99 per ounce, while US gold futures slid by 0.4% to $3,345, as the US dollar index ticked up 0.2%, making bullion less attractive for foreign investors.
The US Consumer Price Index (CPI) showed a 0.1% rise in June, matching expectations but not enough to fuel optimism for early interest rate cuts by the Federal Reserve.
“With inflation edging up, the probability of a rate cut has now shifted further out – possibly to September 2025,” said Adnan Agar, Director at Interactive Commodities.
Despite the moderate pullback, analysts remain bullish on gold in the long run, especially amid continued uncertainty over US tariffs and global trade frictions.
📈 Local Currency Impact
Meanwhile, the Pakistani Rupee showed minor strength against the US Dollar, gaining five paisa to close at 284.67 in the interbank market.
A stronger rupee typically helps reduce the local price of imported commodities, including gold, but the global price movement was the primary driver of Tuesday’s dip.
📊 Expert Insights
Peter Grant, Senior Metals Strategist at Zaner Metals, commented:
“The market continues to be focused on tariffs, keeping gold underpinned… we’re well within the range that’s been in place since May.”
With prices briefly peaking at $3,366 before dropping to the day’s low of $3,334, analysts suggest any deeper pullbacks—especially into the $2,800–3,000 range—could present a long-term buying opportunity.
🛡️ What to Watch
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Upcoming US inflation data and Federal Reserve commentary
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Movement of the US Dollar Index
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Pakistan’s foreign exchange reserves and local inflation
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Developments in US-EU tariff negotiations
