On Tuesday, gold prices had remained unchanged at Rs437,536 per tola.

KARACHI: Gold prices in Pakistan fell by Rs3,100 per tola on Wednesday, tracking a sharp decline in the international market, where the precious metal touched a two-month low amid a stronger US dollar and elevated Treasury yields.

According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of gold dropped to Rs434,436 per tola. Similarly, the price of 10-gram gold declined by Rs2,658 to Rs372,458.

On Tuesday, gold prices had remained unchanged at Rs437,536 per tola.

International Gold Prices Hit Two-Month Low

Gold prices extended their losses in the international market as a stronger US dollar and rising US Treasury yields reduced demand for the non-yielding precious metal.

Spot gold fell 1.2% to $4,113.89 per ounce by 2:12 pm EDT (1812 GMT), after touching $4,066, its lowest level since August 5. US gold futures for December delivery settled 1.1% lower at $4,140.70 per ounce.

Other precious metals also faced selling pressure. Silver prices declined by around 3%, while platinum dropped nearly 4%. Palladium also fell to its lowest level in more than a year.

Adnan Agar, director at Interactive Commodities, said gold fell as expected, hitting a low of about $4,066 before recovering some ground.

He said gold was trading around $4,111, while the day’s high stood at approximately $4,170. According to Agar, the market had shown signs of slowing before the latest decline.

Gold Market Outlook Depends on $4,100 Level

Agar said the metal’s closing level will determine the next direction of international gold prices.

“If the closing comes below $4,100 again, the market will be in trouble,” he said.

He added that a sustained close above $4,100 could keep open the possibility of a recovery towards $4,160-$4,180 per ounce.

Strong Dollar and Treasury Yields Pressure Gold

The latest decline reflects pressure from broader financial-market conditions, particularly the strength of the US dollar and rising government bond yields.

Higher Treasury yields increase the opportunity cost of holding gold because the precious metal does not generate interest. Meanwhile, a stronger dollar makes gold more expensive for buyers using other currencies, potentially reducing international demand.

In Pakistan, domestic gold prices generally follow international bullion trends, while movements in the rupee-dollar exchange rate also influence local rates.

Silver Prices Fall as Pakistani Rupee Gains

Meanwhile, silver prices in Pakistan declined by Rs100 per tola to Rs6,488.

The Pakistani rupee extended its marginal gains against the US dollar, closing at Rs277.02 in the interbank market, compared with Rs277.05 on Tuesday.

The latest movements in precious metals and the exchange rate remain key factors for Pakistan’s domestic bullion market.