KARACHI: Gold prices in Pakistan declined on Tuesday, following losses in the international market, where a firmer US dollar put pressure on bullion. According to rates from the All Pakistan Sarafa Gems and Jewellers Association, 24-karat gold per tola dropped by Rs1,300 to Rs422,136.
Per 10 grams, the metal fell by Rs1,115 to Rs361,913. In the international market, gold lost $13 and stood at $3,996 an ounce, the association said.
Silver prices also move lower
Silver weakened in the domestic market as well. Per tola, it slipped Rs85 to Rs5,793, while 24-karat silver per 10 grams declined by Rs73 to Rs4,966. Internationally, silver fell to $53.15 an ounce, according to the association.
Also read: Pakistan gold rate drops to five-month low on Saturday · Gold prices drop in Pakistan as oil rises amid global uncertainty
Stronger dollar and wider pressures on gold
The US dollar gained 0.3 per cent against a basket of major currencies, touching a near two-week high. Because gold is priced in dollars, a firmer greenback makes it more expensive for buyers using other currencies, which can dampen demand.
Despite its traditional role as a safe-haven asset, gold has struggled amid market volatility, uncertainty linked to the Iran war, high energy prices, AI-related technology stocks and rising government debt.
Oil, inflation data and the outlook for gold
Oil prices edged up on Tuesday, with Brent crude hovering around $116 a barrel, as renewed Houthi attacks on Saudi Arabia highlighted supply risks in the Middle East.
Investors are now waiting for US Personal Consumption Expenditures (PCE) inflation data due on Thursday, a measure the Federal Reserve watches closely as it targets 2 per cent inflation. Ricardo Evangelista, director and CEO of ActivTrades, said gold remains under pressure from the stronger dollar and elevated Treasury yields. He added that a hawkish Fed message or hotter-than-expected PCE figures could push gold below $4,000 an ounce, potentially towards $3,900.
