ISLAMABAD: Gold prices in Pakistan dropped sharply on Friday even as international bullion prices recovered from a steep selloff in the previous session.
According to the All Pakistan Sarafa Gems and Jewellers Association, the price of per tola gold fell by Rs21,400 to Rs507,762, while the rate for 10 grammes declined by Rs18,347 to Rs435,324. Meanwhile, the price of 10 grammes of 22-karat gold decreased by Rs16,819 to Rs399,061. Silver also saw a decline, with per tola silver dropping by Rs1,430 to Rs7,825, and the price of 10 grammes of silver falling by Rs1,226 to Rs6,708.
Globally, gold prices edged higher as investors turned to safe-haven assets amid falling equities and lingering US-Iran tensions. Spot gold rose 2.3% to $4,879.06 per ounce, while US gold futures for April delivery climbed 0.2% to $4,900.9 per ounce.
Kelvin Wong, senior market analyst at OANDA, said there was renewed safe-haven demand, but cautioned that market volatility remains high following last week’s selloff. He noted that gold could fluctuate between short-term resistance at $5,169 and support at $4,400. The geopolitical backdrop included high-stakes nuclear talks between Iran and the United States in Oman, while a global stock rout that began on Wall Street spread to Asian markets.
Spot silver surged 4.2% to $74.21 per ounce after briefly dipping below $65 earlier in the week. Gold was up 0.3% for the week, while silver remained down more than 12% after its steepest weekly drop since 2011. A stronger US dollar also weighed on precious metals after President Donald Trump nominated Kevin Warsh as the next Federal Reserve Chair.
Adding to market uncertainty, the CME Group raised margin requirements for gold and silver futures for the third time in two weeks to manage heightened volatility. In India, gold premiums fell sharply as price swings discouraged buyers.
The release of the US non-farm payroll report for January was delayed to February 11 due to a recent partial government shutdown.Meanwhile, spot platinum edged up 0.2% to $1,990.42 per ounce, and palladium gained 2.9% to $1,664.08, though both remained down for the week.
