Gold prices drop sharply in Pakistan as global bullion market declines

ISLAMABAD: Gold prices fell steeply in both international and domestic markets on Friday, with local bullion rates recording a major single-day decline, according to figures issued by the All-Pakistan Gems and Jewellers Sarafa Association.

In the international bullion market, the price of gold per ounce dropped by $155 to reach $4,545 per ounce. The decline in global prices was mirrored in Pakistan, where the price of gold per tola fell by Rs15,500 to Rs476,862 on the last business day of the week.

The rate for 10 grams of gold also moved lower, decreasing by Rs13,289 to Rs408,832.

Silver and other precious metals also move down

Silver prices also registered a decline in the local market. Per tola silver fell by Rs972 to Rs8,232, while the price of 10 grams of silver dropped by Rs833 to Rs7,057.

In international trade, spot silver was down 7.2% at $77.46 per ounce. Platinum lost 2.9% to $1,996.34, while palladium declined 1.4% to $1,417.18. All three metals were headed for weekly losses.

Previous session had seen a modest increase

A day earlier, on Thursday, gold prices in Pakistan had posted a slight increase in line with limited gains in the international market. At that time, bullion remained broadly steady as investors assessed developments in the US-Israel conflict with Iran and signals emerging from high-level diplomatic contacts between the United States and China.

According to the All-Pakistan Gems and Jewellers Sarafa Association, the domestic price of gold per tola had risen by Rs1,000 on Thursday to settle at Rs492,362. The price of 10 grams of gold had also increased by Rs858 to Rs422,121.

Before that, on Wednesday, gold had closed at Rs491,362 per tola after declining by Rs1,100, reflecting continued volatility in the local bullion market in response to changing global trends.

In the international market on Thursday, spot gold was little changed at $4,689.99 per ounce at 1043 am EDT (1443 GMT), while US gold futures for June delivery were down 0.2% at $4,695.80.

The US dollar index had edged up 0.2%, making dollar-priced bullion more expensive for buyers holding other currencies and slightly limiting upward momentum in gold prices.