Gold slides on ceasefire hopes, US jobs data

KARACHI:

Gold prices in Pakistan declined on Monday in line with a subdued international market trend, as easing geopolitical risk from reports of a possible Israel-Iran ceasefire and stronger-than-expected US labour data kept bullion under pressure, even as volatility persisted around key macroeconomic releases.

In the local bullion market, the price of gold per tola fell to Rs452,233 after a decline of Rs3,094, according to data released by the All-Pakistan Gems and Jewellers Sarafa Association. Similarly, the 10-gram gold was sold for Rs386,987, down Rs2,785.

Spot gold was steady at $4,331.69 per ounce by 11:31 am ET (1531 GMT), after hitting its lowest level since March 23 earlier in the session at $4,268.39, as per Reuters. US gold futures for August delivery edged down 0.2% to $4,356.50, as markets weighed easing geopolitical tensions alongside resilient US economic data.

Global sentiment was influenced by remarks from US President Donald Trump suggesting that Israel and Iran were "looking to do an immediate ceasefire," which helped ease safe-haven demand. Meanwhile, the US economic indicators showed the economy added 172,000 jobs last month.

Market analyst Adnan Agar of Interactive Commodities said gold remained under pressure amid shifting geopolitical signals.

"Gold is going downwards again and has made a new low. Markets are closely watching global developments; if tensions ease further, gold may come under additional pressure, otherwise any escalation could trigger a rebound," he noted.