Gold prices in Pakistan remained unchanged on Wednesday, stabilising after recent fluctuations, even as international markets continued to show volatility driven by macroeconomic and geopolitical factors.

According to the rates issued by the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of gold per tola held firm at Rs523,762. Similarly, the rate for 10 grams of 24-karat gold remained unchanged at Rs449,041, while 22-karat gold was priced at Rs411,635 per 10 grams.

In the silver market, prices registered a slight decline. The per tola rate of silver dropped by Rs75 to Rs8,494, while the price of 10 grams decreased by Rs64 to Rs7,282. Internationally, silver was also under pressure, falling by $0.75 to $80.10 per ounce.

Despite stability in the local bullion market, the international gold prices have been experiencing notable swings. Spot gold recently hovered around $5,010 per ounce, reflecting ongoing uncertainty in global financial markets.

Analysts attribute the broader weakness in gold to a stronger US dollar and persistent inflationary concerns, which have reduced expectations of an early rate cut by the US Federal Reserve. Higher oil prices and rising US producer prices have further reinforced a cautious monetary policy outlook, limiting the upside in bullion prices.

Market participants note that while geopolitical tensions, particularly those linked to Iran and the Gulf region, typically support gold as a safe-haven asset, current trends suggest a divergence. Institutional investors are increasingly liquidating gold positions to cover losses or rebalance portfolios amid strength in equity markets.

Adnan Agar, Director at Interactive Commodities, observed that gold had been trading within a wide range, recently touching highs above $5,000 and dipping below $4,850. He noted that the market was currently showing signs of consolidation after recent selling pressure.

Agar projected that gold could test lower levels around $4,600-4,650 before finding a stable base. However, he added that a recovery was likely once selling pressure eases and market participants regain confidence.

The stability in Pakistan’s local gold prices reflects a temporary pause in volatility, with rates largely aligned to inter-bank exchange rate movements and international benchmarks. Traders expect the domestic market to take a clearer direction once global price trends stabilise in the coming sessions.

Meanwhile, the Pakistani rupee posted a marginal gain against the US dollar in the inter-bank market on Wednesday, settling at 279.26, up Rs0.01 from Tuesday’s close at 279.27. The dollar index rose 0.06% to 99.61 due to easing crude oil prices sparking risk appetite ahead of central bank decisions.