Gold prices in Pakistan moved lower on Tuesday, following a decline in the global market as investors kept a close watch on geopolitical developments and currency movements.
In the local market, the price of gold per tola dropped by Rs1,000 to settle at Rs500,162. Similarly, the rate for 10 grams of gold fell by Rs857 to Rs428,808, according to figures released by the All-Pakistan Gems and Jewellers Sarafa Association.
The latest drop comes a day after a sharper fall on Monday, when gold lost Rs4,900 per tola to close at Rs501,162.
Global market under pressure
Internationally, gold prices remained under pressure as investors reacted to a stronger US dollar and ongoing uncertainty around possible talks between the US and Iran.
Spot gold slipped 0.7 percent to $4,785.99 per ounce by early Tuesday, extending losses from the previous session when prices touched their lowest level since April 13. US gold futures for June delivery also edged down by 0.5 percent to $4,805.
A stronger dollar made gold more expensive for buyers using other currencies, reducing demand and adding to the downward pressure on prices.
Market participants are closely watching reports that the US is hopeful about holding talks with Iran in Islamabad, while signals from Tehran suggest it may consider joining the discussions. Analysts say the outcome of these talks could shape the direction of gold in the coming days.
Kyle Rodda, a market analyst at Capital.com, said investors are waiting for clarity on whether the talks will take place and if they lead to a ceasefire or a broader agreement. He noted that a positive outcome could bring some stability to markets, while failure to reach progress may increase volatility.
Oil prices also eased on expectations that the talks could lead to improved supply from the Middle East. Lower oil prices can help ease inflation concerns, which often affects the appeal of gold as a hedge.
In the broader metals market, silver prices fell 1.1 percent to $79.06 per ounce. Platinum also slipped by 0.6 percent to $2,076.35, while palladium rose 0.6 percent to $1,560.19.
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