KARACHI: Gold prices in Pakistan retreated on Thursday, a day after surging to record highs on the back of the Pakistan-brokered ceasefire between the United States and Iran and the reopening of the Strait of Hormuz.
According to the All Pakistan Sarafa Gems and Jewellers Association, the price of gold fell by Rs.9,500 per tola, settling at Rs.494,662, while 10 grams of 24-karat gold dropped by Rs.8,145 to Rs.424,092. International gold prices also softened, slipping to $4,723 per ounce, down $95. Silver mirrored the decline, with domestic rates easing by Rs300 per tola to Rs7,884, while international silver prices fell to $74 per ounce, a decrease of $3.0.
The correction follows Wednesday’s sharp rally, when bullion markets reacted to news of a two-week truce between Washington and Tehran, mediated by Islamabad. The deal, which reopened the Strait of Hormuz, temporarily calmed fears of prolonged disruption in global oil supplies and trade routes.
Analysts said Thursday’s pullback reflected profit-taking after the previous day’s surge, as investors weighed the durability of the ceasefire. “Markets are adjusting after an extraordinary spike. The geopolitical premium remains, but traders are cautious about overextending positions,” commented a Karachi-based bullion dealer.
The association reiterated that local gold rates are calculated on the basis of interbank exchange values, meaning fluctuations in the rupee against the dollar continue to amplify domestic price movements.
With the ceasefire set to expire in two weeks, bullion traders expect volatility to persist, hinging on whether negotiations extend beyond the temporary truce.
