Gold prices in Pakistan fell on Tuesday, tracking losses in the international market, amid a firmer US dollar and investor caution ahead of the Federal Reserve’s policy decision.
In the local market, the price of 24-carat gold dipped by Rs4,300 to Rs427,436 per tola, according to rates issued by the All-Pakistan Gems and Jewellers Sarafa Association. Ten-gram gold was quoted at Rs366,457, down Rs3,687. A day earlier, gold had gained Rs4,000. Silver also weakened, shedding Rs174 to Rs6,223 per tola.
Internationally, spot gold dropped 0.7% to $4,045.29 per ounce by 11:55 am EDT, while US gold futures for August delivery declined 0.8% to $4,045.20, as per Reuters. The US dollar hovered near a one-month high, making dollar-denominated bullion more expensive for overseas buyers and weighing on prices.
Interactive Commodities Director Adnan Agar noted that gold had retreated modestly. “Today’s (Tuesday’s) low for gold was $4,011, and the high was $4,075. The market was later trading at $4,040,” he said.
Agar pointed to the upcoming US monetary policy announcement as a key event for the market. “The US monetary policy is coming out at night, which is very important for the entire market. Now, in the monetary policy, there’s obviously a crude oil shock as well and in the context of US-Iran war, let’s see what FOMC brings tomorrow (Wednesday).”
Agar added that while chances of a rate hike appeared slim, a hawkish tone from the Federal Open Market Committee could push gold lower, whereas a more dovish stance might support a rebound. “In the coming days, we have to see how this FOMC turns out and what the situation is regarding the US-Iran war,” he said, noting market expectations of a somewhat hawkish tone.
Separately, a Reuters’ poll of 29 analysts and traders showed that gold price forecasts for 2026 had been cut for the first time since late 2023. The median forecast now stands at $4,509 per troy ounce, down from $4,916 three months earlier. Analysts still expect support from central bank buying and concerns over fiscal sustainability despite the recent pullback from January’s record highs.
Meanwhile, the Pakistani rupee extended its marginal gains against the US dollar on Tuesday, closing at 277.85, a rise of one paisa from Monday’s close at 277.86.
Globally, the US dollar held near a one-month high as traders assessed a slim possibility of rate hike at the Federal Reserve’s upcoming meeting. Falling oil prices helped ease some inflation concerns. The dollar index rose 0.03% to 101.55.
