KARACHI:

Gold prices in Pakistan declined on Monday, tracking losses in the international bullion market where prices slipped more than 1% in thin trading as major markets in the United States and parts of Asia remained closed for holidays, and a firm dollar weighed on sentiment.

In the local market, the price of gold per tola dropped by Rs3,200 to settle at Rs523,762. Similarly, the price of 10-gram gold fell by Rs2,743 to Rs449,041, according to rates issued by the All-Pakistan Gems and Jewellers Sarafa Association.

The latest decline comes after a sharp rise over the weekend, when the per-tola rate surged by Rs7,000 to close at Rs526,962. Silver prices also moved lower in the domestic market on Monday, decreasing by Rs55 to Rs8,164 per tola, reflecting the broader weakness in precious metals.

In the international market, spot gold fell 1.3% to $4,976.37 per ounce by 1619 GMT, while US gold futures for April delivery were down 1% at $4,996.60 per ounce. Trading volumes remained subdued as Chinese markets were closed for the Lunar New Year holidays from February 15 to 23, while US financial markets were shut on Monday for the Presidents’ Day holiday.

Market participants said the absence of key trading centres reduced liquidity and amplified price swings, while the strengthening US dollar exerted additional pressure on bullion, which typically moves inversely to the greenback.

Adnan Agar, Director at Interactive Commodities, said global gold markets were experiencing slow activity due to the US bank holiday, with early closure of trading hours further limiting participation.

“The market touched a high of $5,030 and was later near its day’s low around $4,974,” he noted, adding that the immediate support level was around $4,920 per ounce.

According to Agar, a sustained break below this support could expose gold to deeper losses. “If the market closes below $4,920, there is a possibility of prices sliding towards the $4,600 level,” he said.

Analysts expect trading activity to normalise once major markets reopen, which could provide clearer direction for bullion prices. In the near term, movements in the US dollar and expectations regarding global interest rates are likely to remain key drivers for gold, alongside geopolitical and macroeconomic developments influencing safe-haven demand.

Meanwhile, the Pakistani rupee remained largely stable against the US dollar in the inter-bank market, closing at 279.61, according to data released by the State Bank of Pakistan. The latest closing level shows negligible movement compared with Friday’s rate at 279.62, indicating virtually no day-on-day change in the local currency’s value against the greenback.