Local gold drops over Rs3,000 per tola as easing geopolitical tensions reduce safe-haven demand.
Image: HDFC SKY
KARACHI: Gold prices in Pakistan declined on Monday, tracking weakness in international markets as hopes of a possible ceasefire between Israel and Iran and stronger-than-expected US employment data reduced demand for the precious metal.
According to the All-Pakistan Gems and Jewellers Sarafa Association, the price of gold per tola fell by Rs3,094 to Rs452,233.
The price of 10 grams of gold also dropped by Rs2,785, settling at Rs386,987 in the local bullion market.
In global markets, spot gold traded at $4,331.69 per ounce after touching an intraday low of $4,268.39, its weakest level since March. Meanwhile, US gold futures for August delivery slipped 0.2% to $4,356.50.
Investor sentiment improved after comments from Donald Trump suggesting that Israel and Iran were considering an immediate ceasefire, reducing the appeal of gold as a safe-haven asset.
At the same time, stronger US economic data added pressure on bullion prices. The US economy reportedly added 172,000 jobs last month, reinforcing expectations of economic resilience.
Market analyst Adnan Agar said gold remained under pressure due to changing geopolitical developments and improving market sentiment.
He noted that further easing of regional tensions could push gold prices lower, while any renewed escalation may trigger a rebound in demand for the metal.
Analysts expect gold prices to remain volatile as investors continue to monitor geopolitical developments and upcoming economic indica
