KARACHI: Gold prices in Pakistan fell on Saturday, tracking a decline in international bullion markets as concerns over persistent inflation and higher US Treasury yields weighed on the precious metal’s appeal.
According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of 24-karat gold fell by Rs2,100 per tola to Rs450,936, while the price of 10 grams declined by Rs1,800 to Rs386,604.
In the international market, spot gold fell by $21 to $4,284 per ounce.
Silver prices also declined, with the price of one tola falling by Rs60 to Rs6,903.
Investors continued to monitor geopolitical developments in the Middle East and economic data for clues about the US Federal Reserve’s interest-rate policy.
Gold is traditionally viewed as a hedge against inflation, while higher interest rates can weigh on demand for the precious metal by making interest-bearing assets more attractive.
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On the geopolitical front, Iran was awaiting a US response on Saturday to its proposal to reopen the Strait of Hormuz and end the fighting in the Middle East after The Wall Street Journal reported that US President Donald Trump had rejected the deal.
Iran raised the diplomatic initiative at the UN General Assembly in New York, saying it had been transmitted to the US through Qatari mediators. Tehran said the proposal could reopen the strategic waterway and bring an end to hostilities in the region within seven days.
