Pakistan Gold Prices Plummet Amid Stronger Dollar and Higher Yields

Gold prices in Pakistan fell by Rs1,000 to close at Rs426,436 per tola on Wednesday, mirroring losses in the international market. The decrease was attributed to a firmer US dollar and higher Treasury yields ahead of the Federal Reserve rate decision.

The price of 10-gram gold was quoted at Rs365,600, down Rs857 from Tuesday's close. In the global market, spot gold dropped 0.5% to $4,008.11 per ounce by 11:40 am EDT (1540 GMT). US gold futures for August delivery lost 0.8% to $4,006.20.

Market participants were in a wait-and-see mode ahead of the Federal Open Market Committee's decision due at 2 pm EDT. Interactive Commodities Director Adnan Agar noted that gold traded in a range with a high of $4,047 and a low of $3,995, later hovering around $4,011.

Agar outlined possible scenarios: a surprise rate hike or a hawkish tone without a hike could push gold lower, while a dovish stance with no rate increase would likely trigger a rally. Meanwhile, the Pakistani rupee closed slightly stronger on Wednesday, gaining Rs0.03 to settle at 277.82 against the US dollar in the inter-bank market.