Gold prices moved lower in Pakistan on Friday, tracking a decline in the international market as global pressures weighed on bullion.
In the local market, the price of 24-karat gold dropped by Rs2,900 to Rs490,862 per tola. Similarly, the rate for 10 grammes of 24-karat gold fell by Rs2,486 to Rs420,835, according to figures released by the All-Pakistan Gems and Jewellers Sarafa Association.
The price of 22-karat gold also declined, with 10 grammes being sold at Rs385,779.
Silver followed the same trend. The price of 24-karat silver slipped by Rs142 to Rs7,957 per tola, while the 10-gramme rate decreased by Rs122 to Rs6,821.
Global pressure keeps gold under strain
In the international market, gold prices remained under pressure and were heading for their first weekly drop in a month. Spot gold was trading near $4,683 per ounce, down about 0.25 percent during the session and nearly 3 percent lower for the week.
Analysts linked the decline to a stronger US dollar and a sharp rise in oil prices, which has raised concerns about inflation and interest rates. Higher oil prices tend to increase inflation risks, which can lead to prolonged higher interest rates. This often reduces the appeal of gold, as it does not offer any yield compared to other investments.
Oil prices have surged in recent days due to tensions in the Middle East and uncertainty around negotiations between the US and Iran. The lack of progress has kept energy markets on edge, pushing crude prices higher and adding pressure on gold.
At the same time, the US dollar is set for a weekly gain, while US Treasury yields have also increased, making dollar-based assets more attractive for investors.
Market experts said gold is currently struggling to regain upward momentum, with prices facing resistance as investors shift towards assets offering better returns.
Despite the recent decline, physical demand showed some improvement in key markets. Buying activity picked up in China, while gold premiums in India rose to their highest level in more than two months due to tighter supply.
Among other metals, silver also declined in the global market, while platinum lost ground. Palladium, however, posted a slight gain during the session.
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