KARACHI: Gold prices continued to decline in Pakistan on Thursday as rising oil prices increased inflation concerns. Uncertainty in international markets also affected the precious metal’s performance.
According to the All Pakistan Sarafa Gems and Jewellers Association, 24-karat gold prices dropped by Rs3,000 per tola. The new rate reached Rs431,536 per tola.
Similarly, the price of 10 grams of 24-karat gold decreased by Rs2,572 to Rs369,972. Meanwhile, 10 grams of 22-karat gold fell by Rs2,358 to Rs339,153.
Gold prices also declined in the international market. The association reported a decrease of $30 per ounce, bringing the price to $4,090.
Silver Prices Also Decline in Pakistan
Silver prices followed the downward trend in the domestic market on Thursday. The price of silver dropped by Rs121 per tola to Rs6,086.
The rate for 10 grams of silver also decreased by Rs104 to Rs5,217. In the international market, silver prices fell by $1.21 per ounce to $56.08.
These declines came as investors continued to assess developments in energy markets and the global economy.
Rising Oil Prices Put Pressure on Gold
Higher oil prices have increased concerns about inflation and global economic stability. Oil prices rose by more than $2 per barrel on Thursday following further Houthi attacks in Saudi Arabia.
The developments raised concerns about a wider regional conflict and possible disruptions to crude oil supplies.
Soni Kumari, an analyst at ANZ, said gold could face further declines. She highlighted continued uncertainty in energy markets as a key factor affecting prices.
Gold is traditionally considered a hedge against inflation. However, rising energy costs can increase inflationary pressure and influence central bank decisions.
Higher inflation may encourage central banks to maintain tighter monetary policies. Such policies can reduce the appeal of gold because the metal does not generate interest.
US Inflation Data Adds to Market Uncertainty
Recent consumer and producer inflation figures in the United States came in higher than expected. Rising energy costs contributed significantly to the increases.
The latest data strengthened expectations that the Federal Reserve could maintain tighter monetary conditions. However, officials were expected to leave policy unchanged during their October 27–28 meeting.
Interest rate expectations remain an important factor for gold investors. Higher interest rates generally make interest-bearing investments more attractive than gold.
Investors Monitor Global Economic Developments
Gold is widely viewed as a safe-haven asset during periods of economic and geopolitical uncertainty. A weaker US dollar can also support demand by making gold cheaper for buyers using other currencies.
However, safe-haven assets have shown mixed performance amid market volatility this year. Investors continue to monitor several risks affecting global markets.
These include concerns about the Iran war, elevated energy prices and uncertainty surrounding artificial intelligence-related technology stocks. Rising government debt has also added to investor concerns.
In other news read more about Gold Prices In Pakistan Drop By Rs3,600 Per Tola
Market participants will continue watching oil prices, inflation data and central bank decisions. These developments could influence gold prices in Pakistan and international markets in the coming days.
