Gold prices took a steep dive in Pakistan on Saturday, falling Rs4,300 per tola to Rs436,336, as international bullion markets buckled under pressure from a strengthening US dollar and climbing Treasury yields.
The All-Pakistan Gems and Jewellers Sarafa Association confirmed the decline, noting that 10-gram gold dropped Rs3,687 to Rs374,087. In global markets, gold fell $43 per ounce to settle at $4,138, extending a week of losses that saw the precious metal shed approximately 3.3 percent of its value.
Silver also retreated sharply. Local prices fell Rs56 per tola to Rs6,522, while 10-gram silver declined Rs48 to Rs5,591. Internationally, silver dropped $0.56 to $60.44 per ounce.
The downturn marks a reversal from Friday’s brief rally, when gold had gained Rs2,000 per tola. That increase proved short-lived as global market forces reasserted themselves, with the US dollar maintaining strength despite edging lower on Friday and Treasury yields hitting their highest levels since 2002.
Higher bond yields make non-yielding assets like gold less attractive to investors, as they can earn returns elsewhere without taking on additional risk. The 10-year and 30-year US Treasury bonds both reached multi-decade peaks on Thursday, adding significant downward pressure on precious metals.
Market sentiment shifted further after fresh US employment data revealed that job growth slowed sharply in September. While weaker labour numbers typically support gold by reducing expectations for interest rate hikes, the impact was offset by the dollar’s resilience and elevated yields in Friday’s trading.
Investors are closely watching the US Federal Reserve’s next moves on interest rates, as higher rates generally dampen demand for gold by making interest-bearing assets more appealing. The precious metal is traditionally viewed as a hedge against inflation and a safe haven during economic uncertainty, but those qualities lose appeal when safer alternatives offer guaranteed returns.
The volatility in gold prices comes amid ongoing geopolitical tensions in the Middle East, which have historically driven investors toward safe-haven assets. However, the current strength of the dollar and bond markets appears to be outweighing those concerns.
Pakistani gold prices have experienced considerable swings in recent sessions. Earlier in the week, gold fell Rs12,800 per tola on Monday, recovered Rs4,300 on Wednesday, declined Rs3,000 on Thursday, gained Rs2,000 on Friday, and then dropped Rs4,300 again on Saturday.
Meanwhile, the Pakistani rupee showed modest strength, gaining three paisa against the US dollar to close at 277.07, compared to Thursday’s rate of 277.10. The rupee’s stability provided little cushion against the broader international decline in gold prices.
For Pakistani households, which traditionally rely on gold as a savings and investment vehicle, the sharp price movements present both challenges and opportunities. Lower prices may attract buyers looking to accumulate gold at reduced rates, while existing holders face paper losses on their holdings.
