Gold prices in Pakistan moved down on Saturday, tracking a soft trend in the international market, though the drop remained modest compared to the sharp fall seen a day earlier.
According to rates shared by the All-Pakistan Gems and Jewellers Sarafa Association, the price of gold per tola slipped by Rs600 to settle at Rs476,262. Similarly, the rate for 10 grams declined by Rs515, bringing it to Rs408,317.
The latest dip follows a steep fall on Friday, when gold per tola had dropped by Rs15,500 to close at Rs476,862, reflecting strong pressure from global markets.
Global trend weighs on local rates
Internationally, gold prices edged lower, with the rate falling by $6 to reach $4,539 per ounce, including a premium of $20.
In the broader market, gold touched its lowest level in more than a week during the previous session. Analysts linked the decline to a stronger US dollar and rising bond yields, both of which tend to reduce the appeal of gold as an investment.
Higher returns on government bonds increase the opportunity cost of holding gold, which does not offer any yield. At the same time, a stronger dollar makes gold more expensive for buyers using other currencies, which can reduce demand.
Market sentiment has also been shaped by rising global inflation concerns, partly linked to higher oil prices amid ongoing geopolitical tensions. As inflation risks grow, central banks are more likely to keep interest rates high or even raise them further, which can put additional pressure on gold.
Traders now expect fewer chances of interest rate cuts this year, with some even pricing in the possibility of an increase.
Meanwhile, silver prices in Pakistan also recorded a notable decline. The price per tola fell by Rs159 to Rs8,073.
In international markets, silver saw a sharper correction, dropping significantly during the week as analysts pointed to earlier overbuying that needed adjustment.
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