Gold prices in Pakistan continued their downward trend on Tuesday as global market pressure, a stronger US dollar, and rising US Treasury yields weighed on bullion. Investors also stayed cautious ahead of developments in US–Iran talks and key US Federal Reserve-related events.
According to Beyond Time News, both international and local factors played a role in the latest decline in gold rates.
Gold Prices Drop in Local Market
In Pakistan’s domestic market, the price of gold per tola fell by Rs1,000, settling at Rs500,162. The price of 10 grams of gold also dropped by Rs857 to reach Rs428,808, based on data from the All-Pakistan Gems and Jewellers Sarafa Association.
This follows another sharp fall in the previous session, when gold dropped by Rs4,900 per tola, showing continued volatility in the local bullion market.
Silver Prices Also Decline
Silver prices followed the same trend. The per-tola rate decreased by Rs59 to settle at Rs8,358, reflecting weaker sentiment in precious metals overall.
Global Market Pressure Hits Bullion
In international trading, spot gold fell around 2%, reaching $4,724.31 per ounce, its lowest level in more than a week. US gold futures for June delivery also dropped by 1.8% to $4,743.50.
A stronger US dollar made gold more expensive for global investors, which reduced demand. At the same time, rising 10-year US Treasury yields increased pressure on non-yielding assets like gold.
Read more: Gold rate drops in Pakistan and international markets.
Market Uncertainty Keeps Investors Cautious
According to Beyond Time News, investor sentiment remained weak due to uncertainty around US–Iran diplomatic discussions and global economic signals.
Adnan Agar, Director at Interactive Commodities, said gold traded in a wide range during the day, moving between $4,707 and $4,830 before slipping closer to session lows.
He added that unclear developments around US–Iran talks have created confusion in the market, affecting investor confidence. Reports also suggest possible diplomatic moves that could influence future price trends.
Long-Term Outlook Still Positive
Despite short-term pressure, analysts remain cautiously optimistic. Agar noted that gold could regain strength if it stays above the $4,580 level, which may support a recovery in prices.
He also pointed out that geopolitical negotiations often take time and may not produce immediate stability in the market.
Other Global and Local Updates
Elsewhere, Uganda’s central bank has started purchasing gold from local producers to strengthen its foreign exchange reserves, according to international reports.
In Pakistan, the rupee slightly improved by Rs0.01 against the US dollar, closing at 278.90 in the inter-bank market. Meanwhile, the State Bank of Pakistan received a $1 billion deposit from Saudi Arabia’s Ministry of Finance, helping support foreign reserves.
Market Outlook
Gold remains sensitive to global economic shifts, currency strength, and geopolitical developments. For now, investors are watching international talks and US economic signals closely, which will likely guide future price movements.
