Gold price drops in Pakistan despite rebound in international bullion markets

• Per tola gold now priced Rs507,762 in Pakistan.
• 10 grammes gold falls to Rs435,324.
• Global gold settles at $4,879 per ounce.
  

Gold prices in Pakistan dropped sharply on Friday, even as international gold prices rose, rebounding from a steep selloff in the previous session.

According to the All Pakistan Sarafa Gems and Jewellers Association, the price of per tola gold declined by Rs21,400 to Rs507,762, while the rate for 10 grammes dropped by Rs18,347 to Rs435,324.

Similarly, the price of 10 grammes of 22-karat gold dropped by Rs16,819 to Rs399,061.

The price of silver also recorded a downward trend, with per tola silver declining by Rs1,430 to Rs7,825, while the price of 10 grammes of silver declined by Rs1,226 to Rs 6,708.

In the international market, gold prices gained, rebounding from a sharp selloff in the previous session, as global equities fell and US-Iran tensions lingered, while the CME Group raised margins on precious metals to counter risk.

Spot gold rose 2.3% to $4,879.06 per ounce, and US gold futures for April delivery gained 0.2% to $4,900.9 per ounce.

"I do see a bit of a safe-haven investment coming in, but bear in mind that there is still some caution after last Friday's selloff... we still have this fear about Iran-US tension that is still intact," said Kelvin Wong, a senior market analyst at OANDA.

"It's going to be a very near-term choppy price movement for gold between $5,169, which is the key short-term resistance and the key short-term support at the $4,400 level."

Iran and the US started high-stakes negotiations in Oman on Friday regarding Tehran's nuclear programme.

A global stock rout on Wall Street spilled into Asia on Friday, leaving many regional benchmarks in the red.

Gold, a traditional safe haven, does well in times of geopolitical and economic uncertainty.

Spot silver was up 4.2% at $74.21 an ounce on the day after falling below the $65 per ounce level during early Asia trading.

Gold was up 0.3% for the week, while silver was down more than 12% after shedding 18% last week, its biggest weekly fall since 2011.

The US dollar lingered near a two-week high, pressuring precious metals this week, after President Donald Trump nominated Kevin Warsh as the next Federal Reserve Chair last week.

Meanwhile, the CME Group hiked margin requirements for gold and silver futures contracts on Thursday — its third increase in the last two weeks — as the exchange operator seeks to curb risks from heightened volatility in the precious metals market.

Gold premiums in India also more than halved from decadal highs this week as price volatility deterred buyers.

The US non-farm payrolls report for January has been pushed back from Friday to February 11 due to a four-day partial government shutdown that has now ended.

Spot platinum added 0.2% to $1,990.42 per ounce, while palladium gained 2.9% to $1,664.08. Both were down for the week.