Pakistan Gold Prices Plummet Amid Hawkish Fed Signals

Gold prices in Pakistan plummeted on Wednesday, tracking a decline in the international market. The local gold price per tola fell Rs1,800 to Rs453,936, while the price of 10-gram gold decreased Rs1,544 to Rs389,176, according to rates released by the All-Pakistan Gems and Jewellers Sarafa Association.

The decline in gold prices was attributed to hawkish signals from US Federal Reserve officials. Richmond Fed President Tom Barkin stated that inflation is no longer limited to energy and tariff-related shocks, pointing to broader economic strength and consumer demand as sources of price pressure.

Boston Fed President Susan Collins also supported the recent rate hike, citing persistent inflation risks and saying a somewhat more restrictive policy stance could be needed to bring inflation sustainably back to the Fed's 2% target.