KARACHI: The price of gold in Pakistan fell for the third consecutive day on Saturday, tracking weakness in the international market despite heightened geopolitical tensions and rising oil costs.
According to the All Pakistan Sarafa Gems and Jewelers Association, the price of gold per tola in the country decreased by Rs.8,700 to Rs.524,056, whereas the price of 10 grams of gold dropped by Rs.7,459 to Rs.449,727. On the global front, the price of gold slipped by $87 to $5,018 per ounce.
It may be added here that the price of gold per tola had already fallen by Rs.7,100 on Friday, adding to the downward pressure on local markets. Traders said the decline has unsettled retail buyers, many of whom had expected bullion to strengthen amid regional uncertainty.
Market experts and observers explained to MM News that the fall is being driven more by international financial dynamics than by domestic demand. Futures contracts and exchange-traded funds are exerting greater influence than physical buying, while rising U.S. interest rates and a stronger dollar have reduced gold’s appeal. Speculative trading has further amplified volatility, with institutional investors liquidating positions to chase higher yields elsewhere.
Despite inflationary concerns linked to surging oil prices, gold has not responded as expected. Market watchers describe this as a paradox, where liquidity needs and short-term hedging have outweighed gold’s safe-haven logic.
The Sarafa Gems and Jewelers Association, meanwhile, has cautioned that while the current weakness may be temporary, the volatility underscores how global financial flows increasingly dictate local bullion prices.
