Gold Prices Rebound Rs3,500 After Sharp Fall in Pakistan
- Global rates also rise ahead of expected Fed rate cut
Gold prices in Pakistan rebounded on Wednesday, rising by Rs3,500 per tola to reach Rs419,862, a day after suffering a record Rs14,000 plunge, according to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA).
The price of 10-gram gold also jumped Rs3,000 to settle at Rs359,963, reversing part of Tuesday’s steep losses when the yellow metal had fallen to Rs416,362 per tola.
The recovery in domestic rates mirrored trends in the international bullion market, where gold climbed $35 to $3,975 per ounce (including a $20 premium), amid expectations of an upcoming U.S. Federal Reserve interest rate cut.
However, analysts said the gains were partly capped by easing U.S.-China trade tensions, which tempered demand for safe-haven assets. As of 0257 GMT, spot gold was up 0.2% at $3,957.42 per ounce, while U.S. gold futures for December delivery slipped 0.3% to $3,971.20.
Meanwhile, silver prices in Pakistan also moved higher, with the per tola rate increasing by Rs110 to Rs5,034.
Traders said local gold prices remain sensitive to global movements and the rupee’s exchange rate, as Pakistan imports nearly all its bullion. “Volatility in international markets and currency fluctuations continue to dictate domestic prices,” a dealer in Rawalpindi said.
Market watchers expect gold to remain choppy in the coming days as investors await the Fed’s policy decision and further signals on global inflation and geopolitical trends.
