Gold prices in Pakistan moved lower on Tuesday, tracking a decline in the international market as global uncertainty weighed on investor sentiment.
In the local market, the price of gold per tola dropped by Rs2,400 to settle at Rs475,362. Similarly, the rate for 10 grams of gold fell by Rs2,057 to Rs407,546, according to figures released by the All-Pakistan Gems and Jewellers Sarafa Association.
The drop comes a day after gold had posted a strong gain. On Monday, the per tola price had climbed to Rs477,762 after rising by Rs4,600.
Silver prices also followed the same trend. The metal lost Rs153 during the day, bringing the per tola rate down to Rs8,117.
Global pressure weighs on gold
In the international market, gold prices slipped as investors reacted to rising oil prices and concerns about inflation. The global rate fell by $24 to around $4,530 per ounce.
Market sentiment was shaped by fresh tensions involving the United States and Iran, which pushed oil prices higher. Analysts say higher oil prices can add to inflation pressures, which in turn may keep interest rates elevated for a longer period.
Gold is often seen as a safe place to invest during uncertain times, but higher interest rates tend to reduce its appeal since it does not offer any return.
Reports also suggested that hopes for a quick resolution to the situation remain uncertain, which has kept markets cautious. At the same time, investors are increasingly expecting a possible interest rate hike in the US before the end of the year.
Other precious metals also saw declines in global trading. Silver, platinum and palladium all recorded losses, reflecting a broader pullback across the metals market.
Gold prices fall in Pakistan as global rates drop, while rising oil prices and rate hike fears pressure markets further.
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