Gold prices see sharp decline globally, locally

The price of gold per tola reached Rs485,062 in local market

KARACHI:

Gold prices fell by Rs8,900 on Tuesday in Pakistan as global markets experienced fluctuations and a downward trend amid US-Iran tensions and broader uncertainty across international markets.

According to the All-Pakistan Gems and Jewellers Sarafa Association, following the decline, the price of gold per tola reached Rs485,062, while the price of 10 grams of gold also fell by Rs7,630 to Rs415,862.

In the international bullion market, the price of gold per ounce dropped sharply by $89 to $4,627. Similarly, the price of silver per ounce declined by $2.38 to $73.27.

As a result, in local bullion markets, the price of silver per tola decreased by Rs238 to Rs7,811, while the price of 10 grams of silver fell by Rs204 to Rs6,696.

Read: Gold steady in range as global pressure persists

Earlier on Monday, the price of gold per tola rose by Rs800 to settle at Rs493,962. The rate for 10 grams of gold increased by Rs686 to Rs423,492. In the previous session on Saturday, gold had already gained Rs2,300 per tola, indicating continued volatility in the local market.

In contrast, international gold prices moved lower on Monday, weighed by a stronger dollar and cautious investor sentiment ahead of key central bank meetings.

Market participants attributed the global dip to a lack of diplomatic progress in resolving the ongoing Iran conflict, which has kept oil prices elevated and sustained inflationary concerns. Investors are also closely watching upcoming monetary policy announcements, particularly from the US, for signals on interest rates and the economic outlook.

Adnan Agar, Director at Interactive Commodities, noted that gold prices remained under downward pressure in the international market, with intra-day trading ranging between $4,666 and $4,729 per ounce. He added that the market is currently moving within a defined range, with strong support seen around $4,580 and resistance near $4,800-$4,850.

"Unless gold decisively breaks below the support level, the broader trend still allows room for an upward move," he said.