KARACHI: Gold prices in Pakistan witnessed a sharp decline on Tuesday, July 28, 2026, following a drop in international bullion rates, offering some relief to buyers after weeks of market volatility.
According to the latest rates issued by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of 24-karat gold per tola fell by Rs4,300, bringing the new rate down to Rs427,436 from the previous Rs431,736.
The price of 10 grams of 24-karat gold also registered a significant decrease of Rs3,687, settling at Rs366,457 compared to Rs370,144 a day earlier. The decline mirrors the downward trend in the global bullion market, where gold prices dropped by $43 per ounce to $4,050 from $4,093.
Silver prices also moved lower in Pakistan alongside gold. The price of silver per tola declined by Rs174 to Rs6,223 from Rs6,397, while the rate for 10 grams of silver decreased by Rs149 to Rs5,335 from Rs5,484. In the international market, silver prices slipped to $57.44 per ounce, reflecting weaker demand for precious metals.
Analysts say gold prices continue to fluctuate due to uncertainty in global financial markets and changing investor sentiment. The precious metal remains highly sensitive to geopolitical developments, inflation expectations, and interest rate policies of major central banks, particularly the US Federal Reserve.
Despite gold's traditional status as a safe-haven investment during periods of economic uncertainty, expectations that the Federal Reserve may keep interest rates higher for longer have weighed on bullion prices in recent months. Higher interest rates generally reduce the appeal of non-yielding assets such as gold, encouraging investors to shift towards interest-bearing investments.
Market experts believe gold prices are likely to remain volatile in the coming days as traders closely monitor developments in the Middle East, movements in the US dollar, inflation data, and upcoming monetary policy decisions.
Meanwhile, global oil prices also declined by more than 5% after the United States and Iran paused military strikes over the weekend, easing fears of supply disruptions through the Strait of Hormuz. Brent crude fell to $91.08 per barrel, while US West Texas Intermediate (WTI) crude dropped to $84.51 per barrel. Analysts believe easing geopolitical tensions could continue to influence commodity markets, including gold, in the near term.
