Web Desk: Global gold and silver prices extended their decline on Sunday as persistent inflation concerns, rising US Treasury yields and a stronger dollar continued to pressure bullion markets despite lingering geopolitical tensions.
According to the All Pakistan Sarafa Gems and Jewelers Association, the price of 24-karat gold in Pakistan fell by 600 rupees per tola to 476,262 rupees, while the price of 10 grams of gold dropped by 515 rupees to 408,317 rupees.
Meanwhile, silver prices also moved lower in local markets. The price of silver per tola declined by 159 rupees to 8,073 rupees.
In international markets, gold prices slipped further as spot bullion lost 6 dollars per ounce to trade at 4,539 dollars.
Bullion markets started the week on a stronger footing, driven initially by safe-haven demand. However, sentiment weakened steadily as investors reacted to hotter-than-expected US inflation data and diminishing expectations for near-term interest rate cuts by the Federal Reserve.
Spot gold opened the week around 4,687.50 dollars per ounce and briefly climbed above 4,768 dollars late Monday after early buying momentum in North American trading. Nevertheless, gains proved short-lived as traders shifted focus toward rising inflationary pressures and stronger economic indicators from the United States.
US consumer price index data showed inflation rising 0.6% in April and 3.8% year-on-year, prompting investors to scale back expectations for monetary easing. As a result, spot gold retreated toward the 4,700-dollar level.
Selling pressure intensified further on Wednesday after US producer prices rose 1.4% in April, reinforcing concerns that inflation remained broad-based. Consequently, gold prices slipped toward session lows near 4,680 dollars per ounce.
Higher Treasury yields and a firmer dollar continued to reduce the appeal of non-yielding assets such as gold, while geopolitical risks offered only limited support to the precious metals market.
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