Gold Prices Drop in Pakistan Amid Federal Reserve Caution

Gold and silver prices in Pakistan declined between July 28 and July 29, 2026, mirroring a downturn in international bullion rates. The All Pakistan Sarafa Gems and Jewellers Association reported that 24-karat gold fell by Rs4,300 to Rs427,436 per tola, while silver dropped by Rs174 per tola to reach Rs6,223.

Global spot gold prices fell from $4,050 per ounce on July 28 to a range between $4,018 and $4,045 by July 29. This decline was pressured by a U.S. dollar approaching a one-month high and investor caution ahead of a Wednesday monetary policy decision by the Federal Reserve. Market participants are currently weighing the likelihood of a quarter-point interest rate hike.

Volatility in the bullion market is further driven by the ongoing conflict between the United States and Iran, which began on February 28 and has caused significant shocks to crude oil prices. Despite the recent dip, gold has maintained a support level near $4,000 an ounce since late June. In Pakistan, the domestic market saw the rupee make marginal gains, closing at 277.85 against the U.S. dollar as gold prices softened.