Local bullion markets mirror global downturn as gold and silver prices fluctuate amid geopolitical tensions and shifting investor sentiment.
KARACHI: Gold prices in Pakistan declined further on Monday as international bullion markets weakened amid easing demand, geopolitical uncertainty, and shifting macroeconomic pressures, according to market data shared by the All Pakistan Sarafa Association.
The association reported that the price of gold per tola fell by Rs4,900, bringing it down to Rs501,162 in local markets. Similarly, the price of 10 grams of gold dropped by Rs4,201 to settle at Rs429,665.
In the global bullion market, gold prices decreased by 49 dollars per ounce, reaching 4,788 dollars. Analysts attributed the decline to reduced safe-haven demand and ongoing volatility in global financial markets.
Silver prices showed mixed trends. While international silver rates increased by 1.45 dollars to 79.33 dollars per ounce, local markets saw a decline. In Pakistan, silver per tola fell by Rs145 to Rs8,417, while 10 grams decreased by Rs124 to Rs7,216.
Market experts said gold prices were under pressure due to multiple global factors, including rising defense-related expenditures linked to the ongoing Russia-Ukraine conflict. Reports of Turkey selling portions of its gold reserves to manage financial strain also added pressure to international bullion sentiment.
Traders further noted that uncertainty surrounding US-Iran negotiations has contributed to market volatility, influencing investor behavior and reinforcing a downward trend in precious metal prices globally.
Despite periodic fluctuations in silver, analysts expect bullion markets to remain sensitive to geopolitical developments and central bank policies in the coming weeks.
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