Gold prices in Pakistan slipped on Thursday, tracking a broader decline in the international market amid shifting investor sentiment and rising geopolitical tensions.
According to the All Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of 24-karat gold fell by Rs9,720 per tola to Rs432,716. The price of 10-gram 24-karat gold also dropped by Rs8,748 to Rs369,422. Meanwhile, 22-karat gold was recorded lower at Rs338,998 per 10 grams.
Silver followed the same direction. The price of 24-karat silver declined to Rs6,889 per tola, while the 10-gram rate eased to Rs5,857.
Global pressure builds on bullion
In the international market, gold remained under pressure after touching its lowest level in more than six months earlier in the session. Spot gold was slightly lower at $4,063.87 per ounce, while US gold futures also slipped.
The metal has been caught between two opposing forces. On one side, rising geopolitical tensions in the Middle East have pushed oil prices higher after reports of fresh US military strikes in Iran and concerns over potential disruptions in the Strait of Hormuz. On the other hand, expectations of higher and longer-lasting interest rates in the US continue to weigh on gold, which does not offer any yield.
Investors are also closely watching upcoming US inflation data, including the Producer Price Index, for clues about the Federal Reserve’s next move. Recent figures already showed inflation rising at its fastest pace in three years in May, driven largely by energy costs.
Higher oil prices are adding to inflation worries, which usually supports gold. But the possibility of prolonged high interest rates is limiting any strong recovery in the metal.
Other precious metals also moved lower, with silver, platinum and palladium all showing mixed pressure in global trade.
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