Gold prices in Pakistan drop sharply amid global selloff and strong US dollar

Gold prices in Pakistan witnessed a steep decline on Friday, tracking a broad-based fall in international bullion markets as the US dollar strengthened and Treasury yields rose, reducing investor demand for safe-haven assets.

According to the All-Pakistan Gems and Jewellers Sarafa Association, the price of gold per tola fell by Rs15,500 to settle at Rs476,862. Similarly, the price of 10 grams of gold dropped by Rs13,289, bringing it down to Rs408,832. The sharp decline reflects heightened volatility in domestic bullion rates, which have closely followed global market movements in recent weeks.

Just a day earlier, gold had closed at Rs492,362 per tola after a modest gain, highlighting the rapid swings in prices driven by shifting international economic signals and investor sentiment.

In global markets, spot gold fell 2.3% to $4,541.91 per ounce, marking its lowest level in over a week. The metal was also down nearly 3.7% for the week, as rising US Treasury yields and a stronger dollar reduced demand for non-yielding assets like gold.

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Market analysts noted that geopolitical uncertainty in the Middle East, combined with inflation concerns, has kept global interest rate expectations elevated, adding further pressure on precious metals. Silver prices in Pakistan also declined, falling by Rs972 to Rs8,232 per tola.

Commodities analyst Adnan Agar of Interactive Commodities said gold faced sustained selling pressure after failing to hold recent highs near $4,665. He pointed to weak geopolitical outcomes and regional policy changes, including higher import duties in India, as additional factors weighing on sentiment.

Despite the downward trend, analysts believe strong technical support levels may limit further losses, with key support seen around $4,400 and deeper support near $4,200. However, they expect continued volatility driven by global monetary policy expectations, currency movements, and geopolitical developments.

Meanwhile, the Pakistani rupee showed slight stability, appreciating marginally against the US dollar in interbank trade, reflecting a relatively calm currency market despite broader commodity ar