Gold prices in Pakistan moved lower on Friday, reflecting a slight decline in the international market and cautious trading by investors.
According to rates shared by the All-Pakistan Gems and Jewelers Sarafa Association, the price of 24-karat gold dropped by Rs7,100 per tola to Rs533,262. The price of 24-karat gold per 10 grams also fell by Rs6,087 and was recorded at Rs457,186.
Prices of other categories also declined. The rate of 22-karat gold was quoted at Rs419,102 per 10 grams in the local market.
Silver prices followed the same trend. The price of 24-karat silver dropped by Rs324 per tola to Rs8,851. Meanwhile, silver per 10 grams decreased by Rs278 and was sold at Rs7,588.
Jewellers said the change in local rates largely followed movements in the global bullion market, where prices have shown some weakness in recent days.
In the international market, spot gold was trading close to $5,087 per ounce, down about $8.9 or 0.17 percent from the previous session. Despite a small recovery during Friday trading, gold was still heading towards a second straight weekly decline.
Market analysts say several factors are shaping the global trend. Rising energy prices linked to tensions in the Middle East have reduced expectations that the US Federal Reserve may cut interest rates soon. Higher interest rates tend to limit the appeal of gold because the metal does not offer interest or yield.
Spot gold was later seen slightly higher at around $5,095.55 per ounce during early trading hours, while US gold futures for April delivery slipped by about 0.1 percent to $5,100.20.
Analysts say the situation in the Middle East remains an important factor for investors. Reports of attacks on oil tankers in the Gulf and warnings from Iran about keeping the strategic Strait of Hormuz closed have pushed oil prices above $100 per barrel.
Higher oil prices raise concerns about inflation, which can complicate decisions for central banks such as the Federal Reserve. Traders currently expect the Fed to keep interest rates within the 3.5 percent to 3.75 percent range at the end of its upcoming meeting on March 18.
Even with the recent drop, gold remains under close watch among investors during times of global uncertainty. Analysts say the metal often attracts interest as a safe place for investment when geopolitical tensions rise.
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