The price of gold and silver in Pakistan and the global market witnessed a big drop on Thursday.
The price of 24-karat gold per tola fell by a big Rs7,100, bringing the new rate to Rs486,962, according to the All Pakistan Sarafa Gems and Jewellers Association.
Similarly, the price of 10 grams of 24-karat gold dropped by Rs6,087, settling at Rs417,491. Also, the price of 10 grammes of 22-karat gold saw a drop of Rs5,580 to be sold for Rs382,713.
Also Read: Gold price in Pakistan close to Rs500,000 again
Silver prices in Pakistan
Silver prices also followed the trend. The price of 24-karat silver per tola dropped by Rs350 to Rs7,634. Similarly, 10 grams of silver also fell to Rs6,544.
International gold prices
The downward movement was not limited to Pakistan. In the global bullion market, gold fell by $71, reaching $4,642 per ounce.
Gold fell sharply from two-week highs on Thursday after US President Donald Trump said that Washington would continue its military campaign in Iran in the coming weeks, driving oil prices higher and dampening hopes of interest rate cuts.
Spot gold declined over 2.8% at $4,622.59 per ounce, as of 0719 GMT, after falling over 4% earlier and snapping a four-day winning streak. US gold futures slid 3.4% to $4,649.
The pullback followed bullion's climb to its highest level since March 19, before Trump's remarks.
In a prime-time address, Trump said the US would carry out aggressive strikes on Iran and was nearing "completion of its main strategic objectives" in the conflict. It disappointed investors who had hoped for clearer signals of an end to hostilities.
"It's (gold's slide) a clear reaction to (Trump's) address and the risk of escalation potentially over the weekend... that's pushed oil prices, US dollar and yields higher, and naturally that's pushed the gold price quite meaningfully lower," said Kyle Rodda, a senior financial market analyst at Capital.com.
The 10-year US Treasury yield and the dollar index both advanced, pressuring dollar-denominated gold.
Meanwhile, Brent crude surged more than 6% after Trump indicated targeting of Iran's energy infrastructure, raising supply concerns.
Gold had dropped 11% in March, its worst monthly performance since 2008, following the outbreak of the Iran conflict on February 28. The surge in oil prices has fuelled inflation concerns, complicating the Federal Reserve's monetary policy outlook.
Expectations for US rate cuts remain low through most of 2026. Bets for a December reduction have fallen to just 12%, down from around 25% before Trump's latest comments.
While gold typically benefits during periods of inflationary pressure and geopolitical tension, higher interest rates reduce its appeal by increasing the opportunity cost of holding the non‑yielding asset.
Gold traded at a premium in India this week for the first time in two months, as softer prices boosted demand for the metal, while premiums in China ticked down slightly as buyers awaited a deeper correction.
In other metals, spot silver fell 5.4% to $71.07 having earlier dropped over 7%, platinum fell 3.1% to $1,902.65 and palladium shed 1.8% to $1,446.53.
.jpg)
