KARACHI: Gold prices in Pakistan moved lower on Thursday, as higher oil costs sharpened inflation concerns and deepened uncertainty across global markets.
The All Pakistan Sarafa Gems and Jewellers Association said the price of 24-karat gold dropped by Rs3,000 per tola, settling at Rs431,536.
Local gold and silver rates slide
Per 10 grams, 24-karat gold fell by Rs2,572 to Rs369,972, while 22-karat gold lost Rs2,358 and now sells for Rs339,153. Silver also weakened in the domestic market, with the tola price down Rs121 to Rs6,086.
Also read: Gold prices fall in Pakistan as oil-driven inflation fears grow
The 10-gram silver rate decreased by Rs104 to Rs5,217, according to the association’s figures.
International bullion prices also decline
On the international market, gold fell by $30 to $4,090 per ounce, the association reported. Silver dropped by $1.21 to $56.08 per ounce, according to the same body.
Analyst Soni Kumari of ANZ said: “Gold prices can fall further … because we are still seeing a lot of uncertainty around the energy market.”
Oil surge and US inflation data weigh on metals
Oil climbed by more than $2 a barrel on Thursday after further Houthi attacks in Saudi Arabia raised fears of a wider regional conflict and possible disruption to crude supplies. Gold is traditionally seen as a hedge against inflation, but higher energy costs can push inflation up and reinforce expectations that central banks will keep monetary policy tight, which weighs on the precious metal.
Recent US consumer and producer inflation figures came in hotter than expected, largely because of energy costs. These figures have strengthened expectations of tighter policy, although Federal Reserve officials are still expected to hold off on a policy change at their October 27–28 meeting.
Gold is also widely regarded as a safe haven during economic and geopolitical stress, and a weaker US dollar can make it more affordable for buyers using other currencies. However, safe-haven assets have delivered mixed results this year amid market volatility, with concerns over the Iran war, elevated energy prices, uncertainty around AI-linked technology stocks and mounting government debt adding to investor unease.
