Gold prices tumble in Pakistan as US-Iran tensions shake global markets
The latest decline in gold prices Pakistan followed losses in international gold prices, after renewed US-Iran tensions raised concerns over inflation and interest rates. Analysts said the changing global market trend also affected the Pakistan gold market.
According to the All-Pakistan Gems and Jewellers Sarafa Association, the gold price today dropped by Rs3,800 per tola, bringing the gold per tola rate down to Rs429,736.
The price of 10 grams of gold also declined by Rs3,258 to Rs368,429. The latest gold price today reflects the impact of falling international gold prices, which continued to slide for the second consecutive session.
In the global market, international gold prices fell nearly 3%, with spot gold trading at $4,005.59 per ounce, while US gold futures dropped to $4,013.40 per ounce. Silver prices also declined, with the local market recording a fall of Rs123 per tola.
Market experts linked the decline to renewed US-Iran tensions, saying concerns over a possible escalation and uncertainty around the Strait of Hormuz have shifted investors’ attention toward rising oil prices instead of precious metals.
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Interactive Commodities Director Adnan Agar said gold had already been trading near the lower end of the market before geopolitical developments added further pressure. He said oil prices could climb to $84-$85 per barrel, which may continue to weigh on gold prices Pakistan.
He added that if oil prices continue rising, the Pakistan gold market may remain under pressure, while global gold prices could fall further in the coming weeks. This could also keep the gold per tola rate lower in the local market.
Meanwhile, the Pakistani rupee posted a slight gain against the US dollar in the inter-bank market. The local currency closed at Rs278.02 per dollar, improving by Rs0.03 from the previous trading session.
