Gold price drops by nearly Rs1,600 per tola in local market 

KARACHI: Gold prices in Pakistan dropped on Friday, reflecting a decline in the international market amid shifting investor sentiment and temporarily easing geopolitical tensions.  

According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of gold per tola dropped by Rs1,595 to settle at Rs357,000 in the local market. Similarly, the rate for 10-gramme gold came down by Rs1,368 to Rs306,069.  

This follows a smaller decline a day earlier, when the price of gold per tola slipped by Rs460 to Rs358,595.  

Internationally, gold prices also lost ground, with spot gold trading at $3,355.97 an ounce (including a $20 premium), down $16 for the day. US gold futures also dipped by 1 per cent to $3,372.20. The metal was on track for a weekly loss of more than 2 per cent, its worst performance in over a month.  

Analysts say gold has come under pressure due to two key factors: the US Federal Reserve dialling back expectations for interest rate cuts this year, and a brief calming of fears over a possible US military response to ongoing hostilities between Israel and Iran.  

“Trump’s two-week window for a decision on US involvement in the Middle East conflict has introduced some hope that tensions may de-escalate,” said Nitesh Shah, a commodities strategist at WisdomTree. “That’s taken some of the urgency out of safe-haven demand, allowing gold prices to soften.”  

Meanwhile, silver also saw a drop in domestic prices. The rate per tola declined by Rs24 to Rs3,796.  

On the currency front, the Pakistani rupee recorded a slight gain against the US dollar. In interbank trading, the rupee appreciated by 0.04 per cent to reach Rs283.52 against the greenback at 10am, up by 12 paisas from Thursday’s close of Rs283.64.  

A stronger dollar this week, up 0.4 per cent and on track for its best weekly showing in over a month, has further weighed on gold, making it costlier for buyers using other currencies. 

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