KARACHI: Gold prices witnessed a sharp decline in Pakistan, tracking a fall in international bullion markets as a stronger US dollar and elevated Treasury yields weighed on the non-yielding metal.
According to rates issued by the All Pakistan Sarafa Gems and Jewellers Association, the price of 24-karat gold per tola fell by Rs4,300 to Rs436,336.
Similarly, the price of 10 grams of 24-karat gold decreased by Rs3,687 to Rs374,087, while 10 grams of 22-karat gold declined by Rs3,380 to Rs342,925.
In the international market, gold fell by $43 to $4,138 per ounce, according to the association.
Silver prices also declined in the local market. The price of silver per tola decreased by Rs56 to Rs6,522, while the price of 10 grams fell by Rs48 to Rs5,591.
In the international market, silver declined by $0.56 to $60.44 per ounce, the association added.
Investors continued to monitor geopolitical developments in the Middle East and economic data for indications about the US Federal Reserve’s interest-rate policy.
Gold is traditionally viewed as a hedge against inflation and a safe-haven asset during periods of economic and geopolitical uncertainty. However, higher interest rates can weigh on demand for the non-yielding metal by making interest-bearing assets more attractive.
Europe agrees to release diesel stocks, Trump says
Meanwhile, the G7 countries are set to coordinate the release of 100 million barrels of diesel and other oil reserves through the International Energy Agency (IEA) in an effort to stabilise global energy markets, according to a joint statement issued by G7 leaders on Friday.
“We will implement our commitments with a coordinated release through the IEA of 100 million barrels to begin immediately over four months, including a frontloaded substantial diesel release within the first 20 days by G7 members and partners,” the statement said.
The statement was released by the office of French President Emmanuel Macron.
