Gold prices in Pakistan fell on Friday after a decline in the international market, according to the latest rates shared by the All Pakistan Gems and Jewellers Sarafa Association.
In the local market, the price of gold per tola dropped by Rs3,400 and settled at Rs533,762. The price of 10 gram gold also declined by Rs2,915 to reach Rs457,614.
A day earlier, on Thursday, gold had already recorded a drop. The price per tola had fallen by Rs2,800 to reach Rs537,162.
Traders said the change in local prices followed the trend in the global market where gold rates also moved lower.
International market sees mixed movement
In the international market, the price of gold declined by $34 and settled at $5,110 per ounce. The rate included a premium of $20.
However, global prices later showed some recovery on Friday. Spot gold rose by about 0.8 percent to $5,117.27 per ounce during early trading hours. US gold futures for April delivery also moved up by about 1 percent to $5,126.70.
Despite the rebound, gold has lost nearly 3 percent so far this week. If the trend continues, it could end a four week winning streak for the metal. Analysts say fading hopes of interest rate cuts and concerns over rising inflation linked to higher energy prices have weighed on the market.
The weaker US dollar also played a role in the price movement. When the dollar falls, gold often becomes cheaper for buyers using other currencies.
Rising geopolitical tensions support gold
Market analysts say the ongoing conflict in the Middle East is keeping investors cautious. Gold is often seen as a safe place to invest during uncertain times.
Kelvin Wong, a senior market analyst at OANDA, said geopolitical risks remain high and could increase further. He referred to recent remarks by Iran’s foreign minister, who said Iranian forces were ready if the US or Israel launched a ground invasion.
On the sixth day of the conflict, Iran reportedly carried out attacks on Israel as well as targets in the United Arab Emirates and Qatar.
Meanwhile, US Defence Secretary Pete Hegseth and Admiral Brad Cooper, who leads US forces in the Middle East, said the US has enough munitions to continue military operations if required.
The US and Israel launched strikes on Iranian targets earlier in the week, which led to retaliatory attacks from Iran and raised fears of a wider regional conflict.
Outlook for gold prices
Gold has risen about 18 percent since the start of the year, reaching several record highs as investors reacted to global economic uncertainty and geopolitical tensions.
Analysts expect gold prices to remain volatile in the near term. According to Wong, key support for the metal is around $5,040 per ounce, while resistance stands near $5,280. If prices move above that level, they could climb as high as $5,448.
Demand for physical gold has slowed in India this week as buyers stayed cautious due to price swings. In China, however, premiums remained firm as investment demand improved.
Meanwhile, silver prices in Pakistan moved in the opposite direction. The price of silver increased by Rs104, reaching Rs8,914 per tola.
