KARACHI / CHICHAWATNI — The local gold market in Pakistan witnessed a sharp downward correction on Monday afternoon, July 13, 2026, tracking a sudden contraction in global spot bullion prices despite rising geopolitical friction in international trade corridors.
According to the official daily rate sheet released by the All-Pakistan Gems and Jewelers Sarafa Association (APGJSA), the price for 24-karat gold per tola fell by Rs. 3,800 to settle at Rs. 429,736. Similarly, the price for 10 grams of 24-karat gold recorded a decline of Rs. 3,258, closing the session at Rs. 368,429. For manufacturers and retail buyers, 22-karat gold fell correspondingly to Rs. 337,738 per 10 grams.
Strait of Hormuz Escalation Sparks Fed Hawkish Fears
In the international market, spot gold lost its intraday safe-haven momentum, sliding by $38 to trade around $4,073 per ounce. The drop beneath the crucial $4,100 psychological support floor has caught many short-term retail commodity investors by surprise, especially following the recent maritime security escalations in the Middle East.
On Sunday, targeted regional defensive responses regarding transit safety led Tehran to state that the strategic oil transit lane of the Strait of Hormuz would see ongoing disruptions. While global crude oil immediately surged over 5% on energy supply chain anxieties, the commodity price increase triggered an unexpected reaction in precious metals.
Market Analysis: Because physical gold bears no native interest yield, its valuation is highly sensitive to monetary policy adjustments. The sudden spike in crude oil has fueled institutional market expectations that the Federal Reserve will retain a highly aggressive stance to combat energy-driven inflation. The anticipation of prolonged higher interest rates is currently eclipsing traditional safe-haven demand.
Domestic Silver Rates Decline Synchronously
Following the bearish momentum of the gold market, domestic white metal valuations also registered notable drops. The local price of 24-karat silver dropped by Rs. 123 to trade at Rs. 6,339 per tola. On the global stage, silver lost $1.23, sliding down to settle near $58.60 per ounce.
Domestic bullion dealers note that near-term local price volatility remains closely linked to both the strength of the Pakistani Rupee (PKR) and incoming technical thresholds as international gold tests its next major structural support baseline at the $4,000 per ounce level.