Gold prices fall in Pakistan on weaker global trend

KARACHI Gold prices in Pakistan extended their decline on Tuesday, tracking weaker global trends, with rates falling in both local and international markets, traders said.

In the domestic market, the price of gold per tola dropped by Rs2,100 to Rs477,862, while the price of 10 grams fell by Rs1,801 to Rs409,689, according to data from the All Pakistan Sarafa Gems and Jewellers Association.

The decline followed a drop in international prices, where gold fell by $21 to $4,555 per ounce in the global bullion market.

Silver prices also moved lower in Pakistan, with per tola rates declining by 65 rupees to 7,849 rupees, while 10 grams fell by 55 rupees to 6,729 rupees.

The latest fall comes after a sharp drop a day earlier, when gold prices in Pakistan had fallen by Rs3,800 per tola amid easing global rates.

Analysts say gold has come under pressure in recent sessions due to persistent inflation concerns and uncertainty over US monetary policy, which have strengthened expectations that interest rates may remain elevated.

Higher interest rates tend to reduce the appeal of gold, a non-yielding asset, as investors shift towards instruments offering better returns.