KARACHI:
Gold prices in Pakistan declined on Wednesday, mirroring losses in the international market where the precious metal came under pressure after oil prices surged and inflation concerns intensified following comments from US President Donald Trump on the US-Iran conflict.
In the local market, the price of gold per tola dropped Rs4,700 to settle at Rs430,236, according to rates shared by the All-Pakistan Gems and Jewellers Sarafa Association. Similarly, the 10-gram gold was sold at Rs368,858 after a decline of Rs4,029. The price of silver decreased by Rs138 to reach Rs6,421 per tola.
Internationally, spot gold dropped 2% to $4,025.67 per ounce by 11:35 am EDT (1535 GMT), after hitting its lowest level since July 1 earlier in the session, as per Reuters. US gold futures for August delivery slipped 2.9% to $4,035.20 per ounce. Crude oil prices, meanwhile, jumped over 5% amid renewed tensions.
Adnan Agar, Director at Interactive Commodities, attributed the decline in gold to the hike in crude oil prices following fresh developments in the US-Iran situation. While trading around $4,031, the market may head towards $3,900 in the coming days and could go further down towards $3,600, Agar added.
The renewed weakness in gold comes as investors assess the implications of Trump’s statement that an interim agreement aimed at ending the conflict with Iran was “over.” This development has fueled uncertainty, boosting oil prices and raising inflation concerns, which in turn have weighed on the safe-haven appeal of gold.
Market participants were also awaiting the release of the Federal Reserve’s June meeting minutes, scheduled for 2 pm EDT, for further clues on the US central bank’s monetary policy outlook. In a separate development, the Bank of America (BofA) cut its 2026 gold price forecast, signalling subdued optimism for the metal’s performance in the medium term.
Analysts note that while gold remains a key hedge against geopolitical risks, the current dynamics favour risk assets and commodities like oil in the short term.
The Pakistani rupee posted a marginal 0.01% gain against the US dollar on Wednesday, closing at 278.07 in the inter-bank market, up Rs0.03 from Tuesday’s close at 278.10.
