KARACHI: Gold prices continued their downward trend in Pakistan on Thursday, as rising oil prices heightened inflation concerns and added to uncertainty in global markets.
The price of 24-karat gold fell by Rs3,000 per tola to Rs431,536, according to rates issued by the All Pakistan Sarafa Gems and Jewellers Association.
Similarly, the price of 10 grams of 24-karat gold declined by Rs2,572 to Rs369,972, while 10 grams of 22-karat gold fell by Rs2,358 to Rs339,153.
In the international market, gold prices dropped by $30 to $4,090 per ounce, the association reported.
Silver prices also declined in the domestic market. The price of silver fell by Rs121 per tola to Rs6,086, while the rate for 10 grams decreased by Rs104 to Rs5,217.
International silver prices also dropped by $1.21 to $56.08 per ounce, according to the association.
“Gold prices can fall further … because we are still seeing a lot of uncertainty around the energy market,” said Soni Kumari, an analyst at ANZ.
Oil prices rose by more than $2 a barrel on Thursday after further Houthi attacks in Saudi Arabia fuelled concerns about a wider escalation of regional conflict and potential disruptions to crude supplies.
Although gold is traditionally considered a hedge against inflation, rising energy costs can increase inflationary pressures and strengthen expectations that central banks will maintain tighter monetary policies, weighing on the precious metal.
Recent US consumer and producer inflation data came in hotter than expected, largely due to rising energy costs. The figures have strengthened expectations of tighter monetary policy, although Federal Reserve officials are still expected to hold off on a policy change at their October 27–28 meeting.
Gold is also widely regarded as a safe-haven asset during periods of economic and geopolitical uncertainty. A weaker US dollar can make the metal more affordable for buyers using other currencies, potentially supporting demand.
However, safe-haven assets have delivered mixed performance amid market volatility this year. Concerns over the Iran war, elevated energy prices, uncertainty surrounding artificial intelligence-linked technology stocks and mounting government debt have added to investor uncertainty.