Gold prices in Pakistan fell on Friday, tracking losses in the international market as investors reacted to fresh inflation data from the United States and a firmer dollar.
In the local market, gold lost Rs900 per tola during the day, settling at Rs454,862, according to rates released by the All-Pakistan Gems and Jewellers Sarafa Association. The price of 10-gram gold also moved lower, dropping by Rs772 to Rs389,970.
The decline came a day after gold had surged. On Thursday, the price per tola had climbed by Rs2,200 to reach Rs455,762, reflecting sharp movements in global bullion prices.
Silver prices followed a similar trend at home. The metal shed Rs52 per tola to close at Rs6,848.
Global market pressure
Internationally, gold eased as weaker-than-expected US inflation data reduced its appeal as a hedge against rising prices. Spot gold slipped by about $9 to trade around $4,325 per ounce, including a $20 premium. Despite the daily dip, gold remained on track to post a weekly gain.
US gold futures also edged lower, while the dollar hovered near one-week highs. A stronger dollar often makes gold more expensive for buyers using other currencies, which can limit demand.
Market analysts said the latest inflation reading sent mixed signals. US consumer prices rose 2.7 percent year on year in November, below the 3.1 percent increase expected by economists.
This supported hopes of a more relaxed stance from the Federal Reserve but reduced the immediate need for investors to hold gold as protection against inflation.
Silver, however, showed greater strength in global trade. Spot silver rose to around $65.93 an ounce and remained close to record levels reached earlier in the week. The metal has surged sharply this year, outperforming gold by a wide margin.
For Pakistani buyers, movements in global markets and the exchange rate remain key factors shaping local prices. With international gold facing pressure from economic data and currency trends, traders expect prices at home to stay sensitive to developments abroad in the coming days.
