KARACHI: Gold prices in Pakistan declined on Friday, July 17, 2026, in line with a drop in the international bullion market as investors balanced heightened geopolitical tensions in the Middle East against expectations that US interest rates could remain higher for longer.
According to the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of 24-karat gold per tola fell by Rs3,600 to Rs421,836.
Similarly, the price of 10 grams of 24-karat gold dropped by Rs3,086 to Rs361,656.
In the international market, spot gold declined by $36 to $3,994 per ounce.
Meanwhile, the price of 24-karat silver per tola decreased by Rs126 to Rs6,029.
The decline came amid escalating geopolitical tensions in the Middle East, as investors focused on the inflationary impact of higher energy prices and the possibility that the US Federal Reserve may keep interest rates elevated for an extended period.
Iran’s Islamic Revolutionary Guard Corps (IRGC) threatened to close export routes benefiting the United States after Tehran shut the Strait of Hormuz and Washington reimposed a naval blockade on Iranian ports. Oil prices edged higher after reaching a one-month high in the previous session.
“Higher US crude, gasoline and diesel prices will result in higher inflation readings in the next data release, which could keep some Federal Reserve officials on the hawkish side, and that is not helping gold,” UBS analyst Giovanni Staunovo said.
Higher interest rates typically weigh on gold because they increase the opportunity cost of holding the non-yielding precious metal.
Despite the latest decline, analysts expect gold prices to remain volatile as investors closely monitor developments in the Middle East, movements in the US dollar, upcoming economic data, and monetary policy decisions by major central banks.
Traditionally regarded as a safe-haven asset during periods of geopolitical uncertainty, gold has recently come under pressure due to profit-taking and shifting expectations for global interest rates.