Global bullion weakness drags local gold prices lower despite ongoing Middle East tensions

ISLAMABAD: Gold prices in Pakistan extended their downward trend on Tuesday, with the price of 24-karat gold falling by Rs5,600 per tola, taking the cumulative decline over the past two trading sessions to Rs9,400, as weaker international bullion prices outweighed geopolitical concerns.

According to the All Pakistan Gems and Jewellers Association (APGJA), the price of 24-karat gold settled at Rs424,136 per tola, down from Rs429,736 recorded in the previous trading session.

The price of 24-karat gold per 10 grams also declined sharply by Rs4,801 to Rs363,628, compared with Rs368,429 a day earlier.

International gold prices decline

The drop in Pakistan’s bullion market mirrored losses in international gold prices, where spot gold fell by $56 per ounce to $4,017, compared with $4,073 in the previous session.

Despite persistent geopolitical uncertainty surrounding tensions between the United States and Iran, investors shifted focus toward broader market conditions, putting pressure on global bullion prices.

Analysts said easing safe-haven demand and changing investor sentiment contributed to the decline in international gold prices, which subsequently weighed on domestic bullion rates.

Two-day decline reaches Rs9,400

Tuesday’s fall followed another sharp decline in the previous session, bringing the total decrease in local gold prices to Rs9,400 per tola over two trading days.

Gold prices in Pakistan generally track movements in international bullion markets while also reflecting fluctuations in the rupee-dollar exchange rate.

Market participants are expected to closely monitor global economic data, central bank policy signals, currency movements and geopolitical developments, which remain the key drivers of international and domestic gold prices.