ISLAMABAD: Gold prices declined in the global market on Wednesday, reaching their lowest level in nearly a week despite ongoing tensions in the Middle East.
According to international media reports, spot gold slipped 0.1% to $4,100.32 per ounce, while U.S. gold futures for August delivery dropped 1.1% to $4,112.50 per ounce.
Prices of other precious metals, including silver, platinum, and palladium, also moved lower.
The decline came as the U.S. dollar strengthened following fresh U.S. airstrikes on Iran, the cancellation of a license related to Iranian oil sales, and rising crude oil prices.
The stronger dollar increased concerns that inflation could remain elevated, prompting the U.S. Federal Reserve to keep interest rates higher for longer.
Meanwhile, China’s central bank recorded its largest monthly increase in gold reserves in more than two and a half years during June. Beijing and Hong Kong also announced new measures to expand trading in gold, bonds, and currencies, including the launch of a central gold clearing system and the resumption of dollar-denominated gold futures trading.
Since gold prices in Pakistan are largely linked to international markets, a decline in local gold prices is also expected following the global drop.
