KARACHI: Gold prices in Pakistan witnessed a decline on Monday, mirroring a subdued international market trend. The drop was driven by easing geopolitical risks following reports of a possible ceasefire between Israel and Iran, along with stronger-than-expected US labor data, which kept bullion under pressure despite ongoing volatility around key macroeconomic releases.
Local Market Update
According to the All-Pakistan Gems and Jewellers Sarafa Association, the price of gold per tola fell by Rs3,094 to settle at Rs452,233. Similarly, the price of 10-gram gold decreased by Rs2,785 to Rs386,987.
International Trends
Spot gold remained steady at $4,331.69 per ounce by 11:31 am ET (1531 GMT), after hitting its lowest level since March 23 earlier in the session at $4,268.39. US gold futures for August delivery edged down 0.2% to $4,356.50, as markets weighed easing geopolitical tensions alongside resilient US economic data.
Global sentiment was influenced by remarks from US President Donald Trump, who suggested that Israel and Iran were "looking to do an immediate ceasefire," which helped ease safe-haven demand. Meanwhile, US economic indicators showed the economy added 172,000 jobs last month, further reducing the appeal of gold as a safe-haven asset.
Analyst Insights
Market analyst Adnan Agar of Interactive Commodities commented on the situation, stating that gold remained under pressure amid shifting geopolitical signals. "Gold is going downwards again and has made a new low. Markets are closely watching global developments; if tensions ease further, gold may come under additional pressure, otherwise any escalation could trigger a rebound," he noted.
