Gold prices in Pakistan slipped on Saturday, June 20, tracking a weaker trend in the global market as the precious metal remained under pressure from a stronger US dollar and shifting interest rate expectations.
In the local market, the price of gold per tola dropped to Rs437,993 after a decline of Rs43 during the day. The rate for 10 grams also eased, settling at Rs374,166 after a fall of Rs39, according to data shared by the All-Pakistan Gems and Jewellers Sarafa Association.
The slight decline follows a sharper move earlier in the week. On Friday, the per tola price had already slipped to Rs438,036 after a much larger drop of Rs14,900, reflecting continued volatility in the bullion market.
Internationally, gold also showed weakness, with the rate slipping by $0.4 to $4,155.6 per ounce, including a premium of $20. The metal had already been on track for a weekly loss, weighed down by expectations of tighter monetary policy in the United States and a stronger dollar that made gold more expensive for buyers using other currencies.
On Friday, spot gold fell 1.1 percent to $4,156.26 per ounce, its lowest level in more than a week. US gold futures for August delivery also dropped 1.7 percent to $4,173.30, extending losses for the week.
Market activity remained thinner than usual due to holidays in parts of Asia, including mainland China and Hong Kong, which also influenced trading volumes.
Analysts noted that sentiment around gold has shifted after recent signals from US policymakers suggesting the possibility of interest rate increases later this year. Higher rates tend to reduce demand for non-yielding assets like gold, as investors prefer interest-bearing instruments.
Despite some geopolitical uncertainty, including developments around US-Iran diplomatic engagement, investors appeared more focused on monetary policy direction, which continued to drive price movements.
In contrast to gold, silver moved higher in the local market, rising by Rs16 to reach Rs6,962 per tola.
In global trade, however, silver and other precious metals were also under pressure. Spot silver declined 1.5 percent to $64.81 per ounce, while platinum and palladium also recorded losses, extending a broader downtrend across the metals complex.
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