Gold price per tola falls Rs1,000 in Pakistan

Gold prices in Pakistan decreased on Wednesday in line with their loss in the international market. In the local market, gold price per tola reached Rs419,362 after a decline of Rs1,000 during the day.

Similarly, 10-gram gold was sold at Rs359,535 after it fell by Rs857, according to rates shared by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA).

On Tuesday, gold price per tola reached Rs420,362 after a decline of Rs3,500 during the day.

The international rate of gold declined by $10 to reach $3,970 per ounce (with a premium of $20).

The price of silver remained at Rs5,022 per tola.

Meanwhile, international gold prices rose on Wednesday, as bargain hunters stepped in after bullion dropped to a near one-week low in the previous session, while focus was also on the US private payroll data for cues on future interest rate cuts.

Spot gold rose 0.8% to $3,961.85 per ounce by 0346 GMT. Bullion fell more than 1.5% on Tuesday, hitting its lowest since October 30.

US gold futures for December delivery rose 0.2% to $3,970.10 per ounce.

Analysts say that while global markets remain fixated on tech stocks and momentum trades, gold appears to be telling a different story.

“In my last post, I mentioned that Gold Volatility Index (GVZ) hadn’t yet fallen to the levels where major gold rallies typically begin. That was true then, but the picture is starting to change,” Adil Saleem, founder of Zariah, an upcoming micro-investment platform that enables Pakistanis to buy, store, and redeem real physical gold digitally and securely, wrote on a social media platform.

Highlighting the GVZ, which tracks expected price swings, Saleem shared that “GVZ remains somewhat elevated, but the tone beneath the surface feels different now”.

He noted that traditionally, a stronger US dollar has been viewed as a drag on gold, but that relationship is weakening.

“Recent studies suggest that the relationship between the US dollar and gold is much weaker than before. The two can move in the same direction for long stretches. In other words, gold doesn’t need a weak dollar to rise; it needs falling confidence in the broader system,” he said.

The entrepreneur highlighted that with the US economy facing mounting pressure, delayed data releases due to the government shutdown are masking an underlying slowdown.

“When that happens, yields fall, and gold, which competes with bonds for safety and trust, begins to shine,” he said.