Gold prices in Pakistan moved lower on Wednesday, even as international markets showed a rebound driven by easing geopolitical tensions and softer oil prices.
According to data released by the All-Pakistan Gems and Jewellers Sarafa Association, the price of 24-karat gold fell by Rs1,200 per tola to settle at Rs498,962. On a per 10-gram basis, the same purity metal dropped by Rs1,029 to Rs427,779.
The decline was also seen in lower purity gold, with 22-karat rates recorded at Rs392,145 per 10 grams. Silver followed a similar trend in the local market. The price of 24-karat silver slipped by Rs34 per tola to Rs8,324, while the 10-gram rate eased by Rs29 to Rs7,136.
Global market shows recovery
In contrast, gold prices in the international market edged higher. Spot gold was trading near $4,765 per ounce, gaining modestly during the day after a recent dip.
The rise came as global investors reacted to falling oil prices and signs of easing tensions in the Middle East. The United States announced an extension of a ceasefire with Iran, which helped calm fears of a wider conflict. This development reduced concerns about a spike in inflation, which often influences interest rate decisions.
Analysts say lower oil prices can help ease inflation pressure by reducing transport and production costs. This can shape expectations around interest rates, which play a key role in gold demand. When interest rates remain high, investors tend to shift towards assets that offer returns, making gold less attractive.
Market experts noted that gold prices remain sensitive to geopolitical developments. Any change in the ceasefire situation could quickly shift investor sentiment, affecting currencies, oil prices and interest rate outlook.
Other precious metals also recorded gains in global trading. Silver rose to $78.38 per ounce, while platinum and palladium posted noticeable increases.
Despite the global uptick, local gold rates in Pakistan remained under pressure, reflecting currency movements and domestic market dynamics.
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