KARACHI: Gold prices in Pakistan decreased on Saturday, in line with a downward trend in international bullion markets amid pressure from inflation concerns and elevated US Treasury yields.
Data released by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA) showed that the price of 24-karat gold dropped by Rs2,100 per tola, settling at Rs450,936. The price of 10 grams declined by Rs1,800 to Rs386,604.
Internationally, spot gold lost $21 to trade at $4,284 per ounce.
Silver also recorded a decline in the domestic market, with the price of one tola falling by Rs60 to Rs6,903.
Market participants continued to assess developments in the Middle East along with economic indicators that could influence the US Federal Reserve’s future interest-rate decisions.
Gold is generally considered a safe-haven asset and a hedge against inflation. However, higher interest rates and Treasury yields can reduce its attractiveness compared with interest-bearing investments.
Meanwhile, geopolitical developments remained in focus as Iran awaited a US response to its proposal for reopening the Strait of Hormuz and ending hostilities in the Middle East.
The proposal was conveyed to Washington through Qatari mediators during the UN General Assembly in New York, according to Iranian officials. Tehran said the plan could facilitate the reopening of the strategic waterway and pave the way for an end to regional fighting within seven days.
The Wall Street Journal, however, reported that US President Donald Trump had rejected the proposal.
