Gold Prices Dip Globally as US Treasury Announces Buybacks

Gold and silver prices declined on August 25, 2026, ending a four-day winning streak in Pakistan and triggering a broader downturn during early US trading. In Pakistan, the All Pakistan Sarafa Association reported that 24-karat gold fell by Rs600 per tola to Rs486,536, while silver dropped to Rs7,279 per tola.

Global spot gold traded near $4,634.90, down 0.34%, as investors engaged in profit-taking after prices approached $4,700 an ounce. This volatility was driven by a stronger US dollar and a plan from the US Treasury Department to double liquidity-support buybacks in long-end sectors to at least $4 billion per operation starting September 9.

Market participants are currently balancing soft growth data against persistent inflation while awaiting the July PCE inflation report and a speech by Federal Reserve Chair Kevin Warsh at Jackson Hole. Despite the correction, gold maintains a risk premium due to geopolitical tensions in the Strait of Hormuz, where a tanker was disabled northeast of Oman and Iran blacklisted 45 tankers. Experts suggest Pakistani gold prices could still exceed Rs500,000 per tola this month depending on the rupee-dollar exchange rate and international trends.