Gold prices in Pakistan declined on Tuesday, mirroring losses in the international market, as investors tracked escalating tensions in the Middle East that pushed oil prices higher and awaited the US Federal Reserve’s June meeting minutes for clues on future monetary policy.

In the local market, the price of gold per tola fell Rs2,500 to settle at Rs434,936, according to rates released by the All-Pakistan Gems and Jewellers Sarafa Association. Similarly, the 10-gram gold was sold at Rs372,887 after registering a decrease of Rs2,143.

This dip came in line with the performance on Monday, when gold per tola shed Rs2,400 to reach Rs437,436. The domestic market has remained sensitive to international cues, with rupee-dollar fluctuations and import costs also influencing local bullion rates.

On the global front, spot gold slipped 0.6% to $4,138.39 per ounce by 11:55 am ET (1555 GMT). US gold futures for August delivery eased 0.5% to $4,148.50. Market sentiment was shaped by geopolitical risks, particularly after reports of vessels being attacked near the Strait of Hormuz, which lifted oil prices and reinforced safe-haven demand dynamics, though gold faced some profit-taking pressure.

Interactive Commodities Director Adnan Agar provided insights into the international market movement. “Gold hit a high of $4,184, and the low was $4,117. Later, the market was standing at $4,145,” he said. “It is trading within a $70 to $80 range. Actually, the market is currently a bit directionless. We need a good close for gold, like if it closes above $4,300, then there will be an upside. If not, the chances for a downward trend are increasing again,” Agar said.

The yellow metal’s performance remains closely tied to broader macroeconomic factors. China’s central bank extended its gold buying streak for the 20th consecutive month, underscoring continued official-sector support amid global uncertainties. However, this did not prevent near-term price softness as traders focused on the Fed’s policy outlook and persistent Middle East risks.

Meanwhile, silver prices also weakened. In Pakistan, the per-tola silver dropped by Rs120 to Rs6,559. Internationally, spot silver fell over 1%. The recent volatility in precious metals comes as investors weigh the balance between geopolitical tensions, which typically support gold, and expectations around US rate decisions. A stronger dollar or signals of prolonged higher rates could weigh on non-yielding assets like gold.

Meanwhile, the Pakistani rupee held steady against the US dollar in the inter-bank market, closing at Rs278.10, up one paisa compared to Rs278.11 on Monday, according to the State Bank of Pakistan.