Gold Prices Plummet in Pakistan Amid US Dollar Strength

Gold prices in Pakistan dropped by Rs4,000 per tola on Tuesday to Rs449,336, mirroring a decline in the international market. The All-Pakistan Gems and Jewellers Sarafa Association reported the price fall. In the international market, spot gold dipped 0.2% to $4,289.74 per ounce.

The price drop was attributed to a stronger US dollar and elevated Treasury yields, which reduced the appeal of non-yielding assets like gold. Additionally, rising crude oil prices fueled inflation concerns, strengthening expectations that the Federal Reserve could maintain a hawkish stance on interest rates.

Adnan Agar, Director at Interactive Commodities, said the gold market was awaiting the US monetary policy announcement and would closely watch the tone of the Federal Reserve's post-meeting press conference for direction. He noted that a dovish stance could initially push gold lower, followed by a recovery, while a hawkish outlook amid persistent inflationary pressures and rising crude oil prices could increase the likelihood of further decline.