Gold dips Rs1,200 despite global rebound

Gold prices in Pakistan declined on Wednesday, diverging from gains in the international market, where bullion rebounded from a more than one-week low, supported by softer US Treasury yields and fresh bargain hunting amid geopolitical uncertainty.

In the local market, the price of gold per tola fell by Rs1,200 to settle at Rs498,962, according to the All-Pakistan Gems and Jewellers Sarafa Association. Similarly, the price of 10 grams of gold decreased by Rs1,029 to Rs427,779.

The latest drop follows Tuesday's decline, when gold per tola had shed Rs1,000 to close at Rs500,162, indicating continued pressure in the domestic market despite a recovery in global prices.

Silver prices also followed a downward trajectory, falling by Rs34 to Rs8,324 per tola. In contrast, international bullion prices moved higher on Wednesday. Spot gold rose 0.5% to $4,732.79 per ounce by 11:17 am EDT, after gaining 1% earlier in the session, according to Reuters. US gold futures for June delivery were up 0.7% at $4,750.20 per ounce. The rebound comes a day after gold posted its sharpest single-day loss since late March.

Market sentiment globally was supported by a decline in benchmark 10-year US Treasury yields, which slipped by 0.2%, making non-yielding assets like gold relatively more attractive. At the same time, investors engaged in bargain buying after the recent dip, while closely monitoring geopolitical developments, including tensions in the Strait of Hormuz and uncertainty surrounding potential US-Iran negotiations. Adnan Agar, Director at Interactive Commodities, noted that gold remains under mild pressure in the short term but retains a constructive outlook. He said the metal touched a low near $4,712 and hovered around $4,730, with an intra-day high of $4,780.

According to Agar, gold is currently trading within a consolidation range of $4,780 to $4,880. A sustained breakout above this band could open the way towards higher targets of $5,000 and $5,200 per ounce. He added that while momentum has slowed compared to the sharp rallies seen in 2025 and early 2026, the broader trend remains upward as long as prices hold above the $4,580 support level.

"Investor interest has temporarily shifted towards oil and other commodities following gold's recent correction," he said, adding that a renewed breakout could quickly revive market participation.

Meanwhile, the Pakistani rupee appreciated by 0.01% on Wednesday, gaining Rs0.03 to settle at 278.87 against the US dollar in the inter-bank market after closing at 278.90 on Tuesday.