Gold and silver prices fall further in local and global markets

ISLAMABAD: Gold prices extended their decline on Tuesday in both international and domestic markets, while silver also recorded fresh losses.

In the international bullion market, gold fell by $21 per ounce to $4,555. The decline in overseas prices was mirrored in Pakistan’s local sarafa market, where rates moved lower for another day.

The All-Pakistan Gems and Jewellers Sarafa Association said the price of gold per tola dropped by Rs2,100 to Rs477,862. The rate for 10 grams of gold also decreased by Rs1,801, settling at Rs409,689.

Silver prices followed the same direction. The price of silver per tola declined by Rs65 to Rs7,849, while the rate for 10 grams fell by Rs55 to Rs6,729.

Previous session also saw losses

The latest fall came after a decline recorded on Monday. According to the All-Pakistan Gems and Jewellers Sarafa Association, the price of gold per tola had dropped by Rs3,800 to Rs479,962 in the previous session. The price of 10 grams of gold had fallen by Rs3,257 to Rs411,490.

Silver had also weakened on Monday, with the per tola rate decreasing by Rs100 to Rs7,914.

Global market data cited in the report showed spot gold down 1.9% at $4,526.88 per ounce, while US gold futures were lower by 2.3% at $4,537.90 per ounce, pointing to continued selling pressure in the bullion market.

Market range and outlook

Interactive Commodities Director Adnan Agar said the market was standing at a lower level, with prices fluctuating between a high of $4,640 and a low of $4,524. He said prices were later hovering near $4,540.

Agar said recent tensions involving Iran, including reports of attacks on ships, had added to uncertainty. He said that although the United States had denied that it was their ship, the situation suggested the possibility of a low-scale conflict, which had paradoxically put pressure on gold because rising oil prices were strengthening the dollar.

Looking ahead, Agar said gold had strong technical support in the $4,400-4,440 range. He added that the metal was unlikely to fall below that level and could see a reversal.

He noted that recent tensions involving Iran, including reports of attacks on ships, added to uncertainty.

The latest movement adds to the recent downward trend in precious metals prices, with both gold and silver posting back-to-back declines in local and international markets.