Gold prices in Pakistan fell on Monday, tracking a decline in the international market as global financial and geopolitical signals pushed bullion lower.
According to the All Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of gold per tola dropped by Rs4,900 to settle at Rs501,162. The price of 10-gram gold also declined, falling by Rs4,201 to reach Rs429,665.
This comes after a stronger session on Saturday, when gold had risen by Rs4,500 to touch Rs506,062 per tola, reflecting sharp swings in the market within just a few days.
In the international market, gold also moved lower. The per ounce price dropped by $49 to $4,788, including a $20 premium.
Global pressure weighs on bullion
International gold prices came under pressure as the US dollar strengthened and investor sentiment shifted towards risk-driven trading. Spot gold slipped 0.7 percent to $4,792.89 per ounce, touching its lowest level since April 13 during early trading hours. US gold futures for June delivery also fell 1.4 percent to $4,812.20.
Market analysts linked the decline to renewed geopolitical tensions and shifting expectations around inflation and interest rates.
“Gold prices are lower today after the US-Iran ceasefire that markets reacted positively to last week showed signs of weakening,” said Ilya Spivak, head of global macro at Tastylive. He added that rising oil prices have again fuelled inflation concerns, which in turn supported the dollar and bond yields.
The dollar index strengthened during the session, making gold more expensive for buyers using other currencies. Meanwhile, US 10-year Treasury yields also edged higher by 0.6 percent.
Middle East tensions add uncertainty
Broader market sentiment remained fragile as tensions in the Middle East kept investors cautious. Reports of disrupted shipping in the Gulf and rising confrontation between the US and Iran added to uncertainty. Oil prices climbed, while global stock markets showed signs of pressure.
Iran’s warning of retaliation and its decision to skip further talks with the US added to concerns that the brief ceasefire may not hold for long. The developments kept safe-haven flows mixed, with gold failing to benefit despite ongoing geopolitical risk.
Silver also declines
Alongside gold, silver prices in Pakistan also moved down. The price per tola fell by Rs145 to Rs8,417, reflecting weakness across the precious metals market.
In global trade, other metals also slipped. Spot silver declined 1.6 percent to $79.49 per ounce, platinum fell 1.3 percent to $2,076.92, while palladium dropped 1 percent to $1,543.74.
Festive demand remains subdued
In key consumer markets such as India, seasonal buying has also remained weak. Record-high prices have kept jewellery demand muted during a major buying festival, although investment demand saw a slight improvement.
Overall, analysts say gold remains caught between safe-haven demand and pressure from a stronger dollar and expectations of higher-for-longer interest rates, keeping prices volatile in the short term.
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