Gold prices in Pakistan declined on Tuesday, following losses in international bullion markets as higher oil prices intensified worries about inflation.
Rates issued by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA) showed the 24-karat tola price falling Rs3,600 to Rs435,436.
Gold falls while domestic silver holds steady
The 24-karat gold price for 10 grams slid by Rs3,086 to Rs373,316, and 22-karat gold of the same weight lost Rs2,829 to reach Rs342,218. In the international market, gold dropped $36 to $4,129 per ounce, the association said.
Silver showed no movement at home. The tola price stayed at Rs6,234 and the 10-gram price at Rs5,344, while international silver remained at $57.56 per ounce.
Oil rally and Federal Reserve policy outlook
Higher energy costs have added to concerns that inflation will persist, which could restrict the Federal Reserve’s room to ease monetary policy. “Persistent inflationary pressures, driven by high energy prices, continue to support expectations of further monetary tightening by the Federal Reserve,” said Ricardo Evangelista, director and CEO of ActivTrades.
Oil prices rose on Tuesday, with Brent crude trading near a five-month high. Traders priced in geopolitical risks linked to Houthi attacks on Saudi infrastructure and reports of vessel attacks in the Gulf.
Safe-haven demand under pressure amid volatility
Gold is traditionally seen as a hedge against inflation and a safe-haven asset during economic and geopolitical uncertainty. A weaker US dollar can also make it more affordable for buyers using other currencies, which may support demand.
However, traditional safe-haven assets have delivered mixed results this year. Concerns over the Iran war, elevated energy prices, uncertainty around artificial intelligence-linked technology stocks and mounting government debt have all added to market unease.
Gold’s usual appeal during instability has been undercut since the Iran war broke out, as investors sold assets that had performed well to cover losses elsewhere. Government bonds, typically viewed as among the safest investments, have also seen heightened volatility.
