KARACHI:

Gold prices in Pakistan declined on Friday, diverging from gains in the international market, where the precious metal edged higher but remained on track for its first weekly loss in five weeks amid persistent inflationary concerns and geopolitical uncertainty.

In the local market, the price of gold per tola fell by Rs2,900 to settle at Rs490,862. Similarly, the price of 10-gram gold decreased by Rs2,486 to Rs420,835, according to rates issued by the All-Pakistan Gems and Jewellers Sarafa Association.

The latest decline follows Thursday’s sharp drop, when gold prices had fallen by Rs5,200 per tola to close at Rs493,762, reflecting continued volatility in the domestic bullion market.

Silver prices also followed the downward trajectory, shedding Rs142 to settle at Rs7,957 per tola.

In contrast, international gold prices recorded modest gains on Friday. Spot gold rose 0.7% to $4,724.19 per ounce by late morning trade, after touching an intra-day high of over 1%. However, the metal remained under pressure on a weekly basis, down more than 2%, as global markets reacted to a stronger US dollar, elevated Treasury yields, and lingering inflationary risks.

US gold futures for June delivery edged up 0.4% to $4,741.30 per ounce, indicating cautious investor positioning.

Market analysts attributed the mixed trend to geopolitical developments and shifting expectations around inflation and monetary policy. Adnan Agar, Director at Interactive Commodities, noted that gold saw only a slight upward movement internationally, with prices fluctuating between $4,657 and $4,739 during the session.

He added that reports of Iran’s foreign minister arriving in Pakistan lent some support to gold prices, as markets speculated about potential diplomatic developments and their impact on regional stability. “There is a sense of uncertainty about whether negotiations may progress, which has slightly supported gold,” he said.

Despite the uptick, gains remained limited, reflecting cautious sentiment. Agar noted that oil prices also dipped marginally, while the broader market remained in a wait-and-see mode ahead of further geopolitical developments.

Gold had come under sustained pressure throughout March, as tensions linked to the US-Iran conflict bolstered the dollar and heightened inflation fears, reducing the appeal of the non-yielding asset.

Analysts expect gold prices to remain sensitive to geopolitical headlines, currency movements, and inflation data in the coming sessions, with market direction likely to hinge on evolving global developments.

Meanwhile, the State Bank of Pakistan announced on Friday that it had repaid a $1 billion deposit to the Abu Dhabi Fund for Development on April 23, 2026. Last week, deposits worth $2.45 billion had been repaid. “This completes the repayment of total deposits of $3.45 billion to the UAE,” it said.

The Pakistani rupee recorded a slight appreciation against the US dollar in the inter-bank market. By the close of trading, the local currency settled at 278.85, marking a marginal gain of Rs0.01 compared to the previous session. On Thursday, the rupee had ended at 278.86 against the greenback.