Gold prices drop in Pakistan amid rising oil prices

KARACHI: Gold prices in Pakistan fell on Wednesday, following a decline in international markets as oil prices increased and investors awaited US inflation data for indications of the Federal Reserve’s next interest rate decision.

According to the All Pakistan Sarafa Gems and Jewellers Association, the price of 24-karat gold per tola dropped by Rs3,000 to Rs437,836.

The price of 24-karat gold per 10 grams also declined by Rs2,572, settling at Rs375,373.

In the international market, gold prices fell by $30 to $4,153 per ounce, according to the association.

Silver prices also recorded a decline in Pakistan, falling by Rs172 to Rs6,360 per tola.

Meanwhile, investors continued to monitor developments in the Middle East and upcoming US economic data to assess the Federal Reserve’s future monetary policy direction.

Gold is widely regarded as a hedge against inflation and a safe-haven investment during periods of economic and geopolitical uncertainty. However, higher interest rates can reduce its appeal as the metal does not generate interest income, making assets that offer returns more attractive to investors.