Gold prices plunge Rs12,800 per tola in Pakistan amid global sell-off

Gold prices plunged in Pakistan, with the price of 24-karat gold falling by Rs12,800 per tola to Rs438,136, following a sharp decline in international bullion markets.

According to rates released by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of 10 grams of gold dropped by Rs10,973 to Rs375,631. 

Silver prices also declined, with the per-tola rate falling Rs325 to Rs6,578 and 10 grams settling at Rs5,639. 

Internationally, spot gold fell sharply as rising oil prices heightened inflation concerns and strengthened expectations of further US Federal Reserve interest rate hikes. Reuters reported that spot gold declined 1.5% to $4,223.95 per ounce early Monday, while US gold futures also dropped 1.5%. 

Higher energy costs have intensified concerns about persistent inflation, while rising US Treasury yields and a stronger dollar have further weighed on bullion.

Gold typically faces pressure in a high-interest-rate environment because investors can earn returns from interest-bearing assets, reducing the appeal of non-yielding precious metals.

Market participants are closely monitoring upcoming US economic indicators for further signals about the Federal Reserve’s monetary policy outlook.