Bullion rates decline in Pakistan after diplomatic breakthrough reduces demand for safe-haven assets.
Image: CBS News
Gold prices dropped in Pakistan on Thursday as easing tensions between the United States and Iran triggered a decline in international bullion markets.
According to the All Pakistan Sarafa Gems and Jewellers Association, the price of 24-karat gold per tola fell by Rs2,300 to Rs452,936, while the rate for 10 grams declined by Rs2,070 to Rs387,615.
In the global market, gold prices slipped by $23 per ounce to $4,305, reflecting reduced investor demand for safe-haven assets following diplomatic progress in the Middle East.
Silver prices also moved lower, with the per-tola rate dropping by Rs144 to Rs7,359 in the local market.
Market analysts attributed the decline to improved investor confidence after the United States and Iran signed a memorandum aimed at extending a ceasefire and ensuring the reopening of the Strait of Hormuz.
Despite the short-term drop, analysts say gold remains a key hedge against inflation, currency weakness and geopolitical uncertainty, with investors continuing to monitor developments in the region.
