International gold falls $47 per ounce as weaker bullion prices offset geopolitical safe-haven demand
KARACHI: Gold prices in Pakistan declined sharply on Wednesday, falling by Rs4,700 per tola despite renewed geopolitical tensions in the Middle East, as weaker international bullion prices weighed on the domestic market.
According to the All Pakistan Gems and Jewellers Association (APGJA), the price of 24-karat gold settled at Rs430,236 per tola, down from Rs434,936 recorded in the previous trading session.
The price of 24-karat gold per 10 grams also dropped by Rs4,029 to Rs368,858, compared with Rs372,887 a day earlier.
International Gold Prices Weaken
In the international bullion market, spot gold fell by $47 per ounce to $4,078, down from $4,125 in the previous session.
The decline came despite renewed uncertainty in the Middle East following the collapse of the ceasefire between the United States and Iran.
Weaker Bullion Prices Offset Safe-Haven Demand
Market analysts said the fall in international gold prices outweighed the safe-haven demand that geopolitical tensions typically generate.
Gold generally attracts investors during periods of global uncertainty, but broader market factors, including investor positioning and expectations surrounding interest rates, continued to exert downward pressure on bullion prices.
Domestic gold prices closely track movements in international markets while also reflecting fluctuations in the rupee-dollar exchange rate.
Market Outlook
Bullion traders said investors will continue to monitor developments in the Middle East, global economic data and major central bank policy decisions for further direction.
Analysts expect gold prices in Pakistan to remain closely linked to international bullion trends and currency movements in the coming sessions.