Gold Prices Dip in Pakistan and Global Markets Amid Geopolitical Tensions
KARACHI – Gold prices experienced a noticeable decline on Monday in both local and international markets, reflecting global economic shifts and heightened geopolitical uncertainty.
According to the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of 24-karat gold per tola fell by Rs700, bringing the new rate to Rs362,300. Similarly, the rate for 10 grams of gold dropped by Rs600, now priced at Rs310,613.
📉 Global Market Impact
On the international front, the price of spot gold declined by $18 per ounce, now trading at approximately $3,414. Earlier in the session, it had reached its highest level since April 22.
Analysts attribute the dip to a mix of factors, including:
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Investor caution amid the ongoing Israel-Iran conflict
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Anticipation around upcoming decisions from the U.S. Federal Reserve
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Focus on the Group of Seven (G7) leaders’ summit, which may influence global economic policies
Despite the decline, some analysts believe gold could maintain its long-term strength.
“Geopolitical tensions are not going away anytime soon, and with the possibility of interest rate cuts, gold may find solid support,” said Giovanni Staunovo, analyst at UBS.
🌍 Geopolitical Developments
The market continues to monitor the escalating situation in the Middle East. According to international reports, Iranian missile strikes targeted Israel’s Tel Aviv and Haifa early Monday, reportedly resulting in casualties and infrastructure damage.
These developments are being closely watched at the G7 summit in Canada, where global leaders are expected to address rising instability and its potential economic consequences.
📌 Key Takeaways for Gold Investors
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Local gold prices dropped due to a simultaneous decline in international markets.
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Geopolitical risks and upcoming economic policy decisions remain key drivers.
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Safe-haven demand for gold may rise again if tensions escalate or interest rates shift.
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