KARACHI: Gold and silver prices continued their downward trend in both international and local bullion markets on Friday as escalating tensions between the United States and Iran, concerns over the closure of the Strait of Hormuz, expectations of crude oil reaching $100 per barrel, and prospects of higher interest rates ahead of next week’s US Federal Reserve meeting dampened precious metals demand.
In the international bullion market, the price of gold fell by $46 per ounce to $4,050 per ounce.
Reflecting the global decline, Pakistan’s local bullion market also recorded sharp losses. The price of 24-karat gold per tola dropped by Rs4,600 to Rs427,436, while the price of 10 grams of gold decreased by Rs3,944 to Rs366,457.
Silver prices also declined in the international market, with the price per ounce falling by 61 cents to $58.30.
Following the global trend, the local market saw the price of silver per tola decrease by Rs61 to Rs6,309, while the price of 10 grams of silver fell by Rs53 to Rs5,408.
Gold has traditionally been regarded as a safe-haven investment, with its value typically rising during periods of inflation, political uncertainty and economic instability.
For centuries, gold has served as both a store of wealth and a form of currency. Investors often turn to the precious metal when confidence in other asset classes weakens, making it a preferred hedge against market volatility.
More read, Gold prices in Pakistan soar to record Rs429,236 per tola
Last year, Pakistan revised its mechanism for determining domestic gold prices. Under the new formula, the local gold price is set at $20 per ounce above the prevailing international market rate, reflecting adjustments made by the country’s bullion pricing system.
