Gold prices in Pakistan cooled down as geopolitical tensions in the Middle East eased, with 24-karat gold losing Rs3,500 to reach Rs248,700 per tola. Last week, the yellow metal had gained Rs4,600 per tola.
According to the Karachi Sarafa Association, the price of 24-karat gold retreated to Rs213,220 per 10-gram, marking a decrease of Rs3,021 day-on-day. Similarly, the price of 22-karat gold was quoted lower at Rs195,452 per 10-gram.
Silver prices also fell in the domestic market, with 24-karat silver being sold at Rs2,750 per tola and Rs2,257.68 per 10-gram, representing a loss of Rs30 per tola and Rs25.72 per 10-gram.
Globally, spot gold traded around $2,359 an ounce, experiencing a decrease of 1.37% compared to the previous session. This dip follows a five-week rally, the longest streak in over a year, despite concerns about potential conflicts between Israel and Iran in the Middle East.
INTERNATIONAL TRENDS
Tehran’s dismissal of the significance of Israel’s recent attack and its indication of no retaliation has lessened the risk premium in the market, according to Nicholas Frappell, global head of institutional markets at ABC Refinery in Sydney. Additionally, the bearish sentiment in oil prices on Monday supported the idea of easing tensions in the Middle East.
Traders are also eyeing US economic data, particularly the personal consumption expenditures price index projected to show an annual rate rise to 2.6% last month, which would support the case for Federal Reserve policymakers to delay rate cuts. However, this scenario would typically weigh on gold as it doesn’t pay interest.
Despite advances in the US currency and 10-year Treasury yields, which would usually be headwinds, gold remains almost 15% higher so far this year, supported by central-bank buying and demand from Asia, especially China. Banks, including Goldman Sachs Group Inc., have been raising their price targets for the metal.
In other precious metals news, silver sank about 3% after a four-week surge, while palladium and platinum also traded lower.
