KARACHI: The domestic bullion market witnessed a decline in gold prices on Monday, with the All Pakistan Sarafa Gems and Jewellers Association reporting the 24-karat gold rate at Rs. 495,362 per tola, down Rs. 1,600 from the previous session. Similarly, 10 grams of 24-karat gold fell to Rs. 424,693, while 22-karat stood at Rs. 389,316. Silver also followed suit, slipping to Rs. 7,934 per tola.
The downward adjustment in local prices mirrors international trends, where gold eased to $4,730 per ounce, shedding $16, and silver dipped to $74.50 per ounce.
Analysts attribute the retreat to a stronger U.S. dollar and rising bond yields, which have dampened investor appetite for the safe-haven metal. Expectations of prolonged tight monetary policy by the Federal Reserve have further pressured bullion, as higher interest rates reduce the appeal of non-yielding assets like gold.
Geopolitical tensions and persistent inflationary concerns, however, continue to lend underlying support to precious metals, preventing a sharper correction. In recent weeks, central bank purchases, particularly from emerging economies, have also provided a cushion to global gold demand.
Local jewellers note that fluctuations in the rupee’s exchange rate against the dollar remain a key driver of domestic bullion prices, amplifying the impact of international shifts. With volatility in both global and local markets, traders expect cautious sentiment to prevail in the near term.
