Gold falls on hawkish Fed signals

Bullion rates in Pakistan slid on Wednesday, mirroring weakness in global markets. The Express Tribune reported that the tola rate for gold declined by Rs1,800, reaching Rs453,936, per the All-Pakistan Gems and Jewellers Sarafa Association, while the 10-gram rate dropped Rs1,544 to Rs389,176. Internationally, spot gold lost 1.1% to $4,304.89 an ounce as the dollar climbed to a two-month high.

Hawkish remarks from Federal Reserve officials came after last week's 25-basis-point increase, which lifted the benchmark to a range of 3.75% to 4%. Richmond Fed President Tom Barkin argued that inflation has spread beyond energy and tariff shocks, while Boston Fed President Susan Collins warned of persistent price risks. Traders are now weighing the chance of another rate hike this year, and higher yields tend to make non-interest-bearing gold less attractive.

Silver dropped 2.7% to $65.28 an ounce in global trade, with platinum down 2.3% at $1,790.48 and palladium off 2% at $1,280.72. Domestically, silver slid Rs30 to Rs7,008 per tola, while the rupee ended at 277.20 against the US dollar, up Rs0.01 from the previous session. Tensions over Iran and the wider Middle East have kept some safe-haven demand for bullion in place.