Gold prices in Pakistan moved lower on Friday, giving back part of the previous session’s gains as international bullion prices came under pressure amid fresh geopolitical tensions and expectations that US interest rates could stay higher for longer.
According to the All Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of 24 karat gold fell by Rs1,400 per tola, bringing the new rate to Rs432,436. The price of 10 grams of gold also declined by Rs1,200 to settle at Rs370,744.
The latest decline came just a day after the local market recorded a sharp rise, when gold gained Rs3,600 per tola to close at Rs433,836.
Internationally, gold prices also slipped, leading to the fall in Pakistan’s market. The global bullion rate dropped by $14 to $4,100 per ounce, including a premium of $20, reflecting weaker investor demand despite ongoing tensions in the Middle East.
Unlike gold, silver prices continued to climb in the local market. The price of silver increased by Rs11 per tola, taking it to Rs6,432.
In the global market, spot gold was trading about 0.4 per cent lower at $4,105.97 per ounce by late trading hours. The metal was also on track to record a weekly decline of around 1.6 per cent. US gold futures for August delivery were down 0.6 per cent at $4,114.80 per ounce.
Market analysts said higher crude oil prices and rising tensions between the United States and Iran have complicated the outlook for precious metals. Iranian forces launched strikes on US military facilities in Gulf states on Thursday, a day after Washington targeted Iranian regions, adding to concerns over wider regional instability.
While geopolitical uncertainty often supports demand for safe haven assets such as gold, rising oil prices also raise inflation risks. Higher inflation can encourage central banks to keep interest rates elevated or even increase them further. That typically weighs on gold because the metal does not generate interest or dividend income.
Analysts believe investors are now closely watching upcoming US inflation figures and comments from Federal Reserve Chair Kevin Warsh for fresh clues about the direction of monetary policy.
According to CME FedWatch data, financial markets are currently pricing in a 58 per cent probability of a US interest rate hike in September. Minutes from the Federal Reserve’s June meeting also showed policymakers remain concerned about inflation, with some members supporting another rate increase before the central bank decided to leave rates unchanged.
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