Gold falls sharply on rising US Treasury yields

Domestic gold rates in Pakistan fell steeply on Monday, mirroring a sharp drop in global bullion, The Express Tribune reported. According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the tola price dropped by Rs12,800 to Rs438,136, while the 10-gram rate eased Rs10,973 to Rs375,631. Gold had ended Saturday at Rs450,936 per tola after shedding Rs2,100 in that session.

The move followed a steep slide in international prices, with spot gold dropping as much as 4% to $4,111 an ounce, its lowest since August 5, before partly recovering, according to Reuters. Rising US Treasury yields, with the 10-year benchmark reaching its highest level since June 2007, weighed on demand for the metal, which offers no regular income. Analyst Adnan Agar of Interactive Commodities attributed the immediate pressure to those higher yields, noting the market was trading near $4,130 after opening around $4,250.

Silver also weakened in the domestic market, falling Rs325 per tola to Rs6,578. Meanwhile, the rupee extended its small gains against the dollar in the inter-bank market, closing at 277.15, up Rs0.01. Agar also pointed to US-Iran tensions as a factor that could significantly affect gold prices.