Gold prices in Pakistan continued their downward trend on Monday, tracking fresh losses in the international market as easing geopolitical tensions and renewed inflation concerns reduced demand for the safe-haven metal.
According to the All Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of gold fell by Rs2,300 per tola, bringing it down to Rs428,936.
The price of 10 grams of gold also moved lower, dropping Rs1,972 to Rs367,743.
The latest decline follows Saturday’s fall of Rs1,000 per tola, when gold settled at Rs431,236. The back-to-back losses have pulled local prices below the Rs429,000 mark after recent record highs.
Silver prices also came under pressure. The price of one tola of silver fell by Rs69 to Rs6,324.
Global market weighs on local prices
International gold prices also slipped on Monday, putting further pressure on Pakistan’s bullion market.
The international rate used by local markets dropped by $23 to $4,065 per ounce, including a premium of $20.
In global trading, spot gold fell 0.9 percent to $4,049.90 an ounce, while US gold futures for August delivery declined 0.8 percent to $4,063.50.
The precious metal has remained under pressure in recent weeks. It recorded a weekly decline of 1.7 percent on Friday and is heading for a fourth consecutive monthly loss.
Market analysts said investors are closely watching developments in the Middle East after Iran and the United States agreed to halt recent hostilities in the Gulf and resume talks over their dispute involving the Strait of Hormuz.
At the same time, concerns that higher energy prices could keep inflation elevated have strengthened expectations that the US Federal Reserve may keep interest rates higher for longer. Higher interest rates generally reduce the appeal of gold because it does not offer any yield.
Ricardo Evangelista, an analyst at ActivTrades, said gold remains under pressure as investors wait for more clarity on US-Iran negotiations. He added that any renewed tensions could push energy prices higher, increase inflation concerns and support expectations of tighter monetary policy, which could continue to weigh on gold prices.
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