KARACHI:

Gold prices in Pakistan extended losses on Tuesday, tracking mixed global cues as investors weighed geopolitical risks and monetary policy outlook, while the local market remained under pressure.

According to the All-Pakistan Gems and Jewellers Sarafa Association, the price of gold per tola fell by Rs2,100 to settle at Rs477,862. Similarly, the price of 10 grams declined by Rs1,801 to Rs409,689. Silver prices also moved lower, dropping Rs65 to Rs7,849 per tola. In contrast, international gold prices edged higher after hitting a more than one-month low in the previous session. Spot gold rose 1.2% to $4,574.17 per ounce by 11:42 am EDT, according to Reuters, as markets assessed a fragile ceasefire in the Middle East and its potential implications for inflation and interest rates.

Market participants remain cautious amid geopolitical uncertainty. The United States indicated that a ceasefire with Iran largely holds despite sporadic exchanges of fire, offering some temporary relief to markets. However, concerns persist over a broader escalation.

Adnan Agar, Director at Interactive Commodities, noted that gold touched a high of $4,586 and a low of $4,513, with the market later hovering around $4,557. He said the overall trend remains weak, adding that unless prices reclaim and sustain above the $4,650-4,700 range, bearish sentiment is likely to persist.

Agar highlighted strong support between $4,400 and $4,450, suggesting a potential retest of these levels before any meaningful recovery. He added that further escalation in US-Iran tensions could trigger additional downside before a rebound emerges.

Meanwhile, the Pakistani rupee strengthened slightly by Rs0.01 to settle at 278.75 against the US dollar.