Gold prices in Pakistan continued to move lower on Friday, tracking losses in the international market and offering slight relief to buyers.
In the local market, the price of gold per tola dropped by Rs1,000 to settle at Rs467,262. Similarly, the rate for 10 grams declined by Rs858, reaching Rs400,601, according to figures released by the All-Pakistan Gems and Jewellers Sarafa Association.
The latest drop follows a sharp fall a day earlier, when gold lost Rs11,000 per tola to close at Rs468,262 on Thursday, showing ongoing volatility in the market.
Global market keeps prices under pressure
Internationally, gold prices also edged down. The global rate slipped by $10 to $4,445 per ounce, including a premium of $20. Despite a brief recovery during the day, the metal remained under pressure overall and is heading towards its fourth straight weekly decline.
On Friday, spot gold rose around 2 percent to $4,466 per ounce, helped by a weaker US dollar and buying interest at lower levels. However, it still remained down about 0.5 percent for the week.
Analysts say gold has been facing selling pressure in recent weeks as investors shift funds to cover losses in other markets. At the same time, expectations of higher global interest rates are limiting any strong recovery.
Rising oil prices have added another layer of uncertainty. Brent crude has stayed above $105 per barrel amid tensions in the Middle East, raising concerns about inflation. Higher inflation usually supports gold, but the possibility of prolonged high interest rates makes the non-yielding metal less attractive.
Market expectations also suggest that interest rates in the US may stay higher for longer, with traders not expecting rate cuts in 2026 and even seeing a chance of an increase later in the year.
Meanwhile, geopolitical developments remain in focus. Reports indicate that the US may extend its pause on strikes targeting Iran’s energy facilities, though uncertainty around the situation continues to influence investor sentiment.
Silver also declines locally
Alongside gold, silver prices in Pakistan also saw a decline. The price per tola fell by Rs30 to reach Rs7,454.
In contrast, international silver prices moved higher, rising over 3 percent during the day, reflecting mixed trends between local and global markets.
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