Gold prices in Pakistan edged lower on Tuesday, giving back part of the previous session’s gains as international bullion prices softened and investors kept a close eye on the US Federal Reserve and the latest developments in the Middle East.
According to the All Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of one tola of gold fell by Rs500 to Rs427,936. The price of 10 grams also dropped by Rs428, settling at Rs366,886.
The decline came a day after gold climbed sharply in the local market, with the price of one tola rising by Rs1,700 to Rs428,436 on Monday.
In the international market, gold slipped by $5 to $4,055 per ounce, including a premium of $20. Spot gold was trading near $4,053 an ounce, staying within the narrow range it has occupied for several weeks.
Analysts say the precious metal is struggling to find a clear direction as investors weigh the possibility of another US interest rate hike against ongoing geopolitical risks.
Ricardo Evangelista, senior analyst at ActivTrades, said gold has remained trapped between roughly $4,000 and $4,100 an ounce as markets wait for stronger signals on the Federal Reserve’s next move. He added that recent developments have done little to break that pattern.
Investors are also preparing for a busy week of US economic data, including job openings, private sector hiring figures and Friday’s closely watched nonfarm payrolls report. Stronger than expected data could strengthen the case for higher interest rates, which often reduce the appeal of non yielding assets such as gold.
Meanwhile, uncertainty surrounding efforts to end the five month conflict involving Iran, along with fresh concerns over shipping in the Strait of Hormuz, continues to keep markets on edge. Rising energy costs linked to the conflict have also fuelled concerns that inflation could remain stubbornly high.
Despite the recent pullback, analysts believe gold’s longer term outlook remains favourable, supported by persistent inflation, central bank buying, rising global debt and limited growth in mine supply.
Silver moved in the opposite direction in Pakistan, gaining Rs60 to reach Rs6,351 per tola. In the international market, spot silver rose 0.8 percent to $58.66 per ounce, while platinum and palladium also posted gains.