KARACHI:

The downward trend in gold and silver prices in both global and local markets has continued even after Eidul Fitr, driven by escalating tensions in the Middle East.

Exports of gold and jewellery from Dubai — considered a major global gold hub — have been disrupted following Iran’s attacks on the United Arab Emirates. Additionally, discount sales by Emirati gold traders have further contributed to the sharp decline in prices.

In the international bullion market, the price of gold per ounce dropped significantly by $436, reaching $4,250. As a result, in local bullion markets, the price of gold per tola fell by Rs43,600 to Rs447,762 on Monday, while the price of 10 grams declined by Rs37,380 to Rs383,883.

Similarly, in the global market, the price of silver per ounce decreased by $8 to $64, leading to a drop in local markets where the price per tola of silver fell by Rs800 to Rs6,884, and the price of 10 grams declined by Rs686 to Rs5,901.

It is noteworthy that over the past three weeks, the price of 24-carat gold per tola in the country has recorded a cumulative decline of Rs116,100, marking a significant drop.

Experts say that due to the ongoing US-Israel-Iran conflict, flights to Gulf countries have been affected, severely impacting trade activities. In this environment, Emirati gold traders are offering gold at discounted rates.

Iran’s attacks on US bases and financial institutions in Gulf countries have prolonged the conflict, creating uncertainty in global commodity markets. Meanwhile, expectations are rising that the US Federal Reserve may cut interest rates amid increasing inflationary pressures.