Gold prices in Pakistan moved lower on Saturday, tracking losses in the international market as pressure from rising inflation concerns continued to weigh on bullion.
In the local market, the price of gold per tola dropped by Rs2,200 to settle at Rs473,162. Similarly, the rate for 10 grams fell by Rs1,886 to Rs405,660, according to figures released by the All-Pakistan Gems and Jewellers Sarafa Association.
A day earlier, on Friday, gold prices had shown no change, with the per tola rate holding at Rs475,362.
Global market weighs on local rates
In the international market, gold prices declined by $22 to reach $4,508 per ounce, including a premium of $20. The downward trend abroad fed directly into local pricing, which often follows global movements.
Global bullion markets remained under pressure on Friday, marking a second straight weekly decline. Analysts linked the weakness to rising oil prices, which have kept inflation concerns alive and strengthened expectations of higher interest rates in the US.
Higher energy costs tend to push inflation up, which may lead central banks to keep interest rates elevated. This reduces the appeal of gold, as it does not offer any yield.
Market sentiment has also been shaped by uncertainty around oil supply routes, particularly concerns linked to the Strait of Hormuz. These worries have added to fears of disrupted supply chains and further inflation.
At the same time, US Treasury yields have remained near recent highs, making interest-bearing assets more attractive compared to gold.
Traders are now pricing in a 58 percent chance of at least one interest rate hike by the US Federal Reserve before the end of the year. Comments from Federal Reserve officials have also signalled a possible shift away from earlier expectations of rate cuts.
Meanwhile, silver prices in Pakistan remained unchanged, with the per tola rate holding at Rs8,034.
In global markets, however, silver, platinum and palladium all recorded losses, reflecting broader weakness across precious metals.
Read next: Pakistan eyes major tariff relief from China to boost exports
