Gold prices in Pakistan moved lower on Saturday, following a mild decline in international markets, while silver recorded a sharp increase.
In the local market, the price of gold per tola dropped by Rs200 to settle at Rs483,762, according to figures released by the All-Pakistan Gems and Jewellers Sarafa Association. Similarly, the rate for 10 grams of gold fell by Rs172 to Rs414,747.
The downward move came in line with a slight dip in global bullion prices. In the international market, gold was priced at $4,614 per ounce, including a premium of $20, after easing by $2 during the day.
Despite the dip in gold, silver prices moved in the opposite direction. The price of silver per tola surged by Rs193, reaching Rs8,014 in the local market.
Global market shows mixed signals
Globally, gold showed some recovery after earlier losses in the previous session. Spot gold rose marginally by 0.1 percent to $4,627.63 per ounce by the afternoon, after dropping to an intraday low of $4,559.48. However, it remained on track to post a weekly loss of about 1.7 percent.
Market sentiment appeared to shift on reports suggesting possible progress in talks related to the Iran conflict. A fresh proposal from Tehran raised hopes of easing tensions, which in turn reduced immediate demand for safe-haven assets like gold.
Analysts said that any improvement in geopolitical conditions could influence central bank decisions. If tensions ease, it may open the door for interest rate cuts in the US, which could weaken the dollar and support gold prices.
The US Federal Reserve, however, kept its policy rate unchanged this week and signalled caution on future cuts. This stance has weighed on gold, as higher interest rates tend to reduce the appeal of non-yielding assets.
Meanwhile, the US dollar softened slightly against other currencies, making gold relatively cheaper for international buyers.
Silver gains on strong demand outlook
Silver stood out with a strong gain in the global market, climbing around 3 percent to $75.91 per ounce. Experts linked the rise to tight supply conditions and continued demand from industries such as solar energy, along with steady interest from investors.
Overall, the precious metals market remained sensitive to global political developments and monetary policy signals, with short-term price movements expected to stay volatile.
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