On Tuesday, gold and silver prices went down in both international and local bullion markets. This is part of a recent trend of precious metals trading going down. Gold prices fell by $10 an ounce on the global market, ending at $4,778 an ounce. Investors were still cautious because economic signals were changing.

The price of 24-karat gold per tola in Pakistan fell by Rs1,000, bringing the new rate to Rs500,162. The price of 10 grams of gold, on the other hand, went down by Rs857 and is now Rs428,808. Silver also saw a drop in trading within the country. The price of silver per tola dropped by Rs59 to Rs8,358, and the price for 10 grams dropped by Rs51 to Rs7,165.

In international trade, other precious metals also lost value. Platinum fell 0.8% to $2,072.22 per ounce, palladium fell 0.3% to $1,547.25 per ounce, and spot silver fell 1.4% to $78.80 per ounce. On Monday, gold prices in Pakistan had already dropped a lot after a big drop in the international market.

The All-Pakistan Gems and Jewellers Sarafa Association (APGJSA) says that the price of 24-karat gold per tola dropped by Rs4,900, bringing it down to Rs501,162. This wiped out the gains made during Saturday's trading session, when prices went up by Rs4,500.

In the same way, the price of 10 grams of gold fell by Rs4,201 to Rs429,665, and the price of silver per tola fell by Rs145 to Rs8,417.

Reasons Behind Decline: Analysts said that the main reasons for the drop were a stronger US dollar and higher 10-year US Treasury yields. A stronger dollar makes gold more expensive for people who live outside the US, and higher bond yields make assets that don't pay interest, like bullion, less appealing.

At the same time, new tensions between the US and Iran made things even more uncertain in the financial markets. Reports that the US had seized an Iranian cargo ship pushed oil prices up by almost 5%, which made markets around the world even more volatile.

People who trade in precious metals are now closely watching global economic data, currency movements, and political events to figure out where the metals will go next. Gold may become a safe haven asset again if worries about inflation and geopolitical risks continue to grow. But the dollar's strength and rising bond yields could keep gold and silver prices low in the short term.

Credit: Independent News Pakistan (INP)