Gold prices in Pakistan moved lower on Tuesday, even as the international market showed slight gains due to rising geopolitical uncertainty.
In the local market, the price of 24-karat gold dropped by Rs3,000 per tola, settling at Rs488,462. Similarly, the rate for 10 grams of 24-karat gold declined by Rs2,572 to Rs418,777, according to figures released by the All-Pakistan Gems and Jewellers Sarafa Association.
The price of 22-karat gold also followed the same trend, falling to Rs383,892 per 10 grams.
In contrast, silver prices remained unchanged. The rate for 24-karat silver stayed at Rs7,744 per tola and Rs6,639 per 10 grams, showing stability in the domestic market.
Global market stays cautious
Internationally, gold prices showed a modest increase but remained largely range-bound as investors held back ahead of key geopolitical developments.
Spot gold was trading around $4,651 per ounce, posting a slight gain, while US gold futures for June delivery edged lower to around $4,676. Analysts said market participants were avoiding major positions as uncertainty continued to build.
Tensions in the Middle East remained a key focus, as Iran and Israel exchanged fresh attacks. The situation has grown more sensitive ahead of a deadline set by US President Donald Trump, who has demanded the reopening of the Strait of Hormuz. Reports suggested Iran had not agreed to the demand, adding to investor caution.
Oil prices also stayed elevated above $110 per barrel, raising concerns about global inflation. While gold is often seen as a hedge against inflation, higher interest rates can reduce its appeal since it does not offer any yield.
Officials from the US Federal Reserve have signalled continued concern over inflation, with policymakers indicating that interest rates may remain higher for longer. Market expectations suggest that a rate cut is unlikely this year.
Investors are now waiting for the minutes of the Federal Reserve’s latest policy meeting, along with key inflation data, including the Personal Consumption Expenditures index and the Consumer Price Index, expected later this week.
Despite short-term caution, some analysts believe that gold may continue to find support due to ongoing geopolitical risks and inflation concerns.
Gold prices fall in Pakistan as global uncertainty and rising tensions keep investors cautious ahead of key economic data releases.
Read next: Gold prices rise in Pakistan as global market stays uncertain
