Gold and silver prices on Tuesday declined in both international and domestic markets, reflecting broader trends in the bullion trade.

In the international bullion market, gold fell by $10 per ounce to settle at $4,778.

In the local market, the price of gold per tola decreased by Rs1,000 to Rs500,162. Similarly, the price of 10 grams of gold dropped by Rs857 to Rs428,808.

Silver prices also recorded a decline. The price per tola of silver fell by Rs59 to Rs8,358, while the rate for 10 grams of silver decreased by Rs51 to Rs7,165.

Among other metals, spot silver fell 1.4% to $78.80 per ounce, platinum lost 0.8% to $2,072.22, and palladium ​was down 0.3% at $1,547.25.

Read: Geopolitical friction drives gold down by Rs4,900

On Monday, gold prices in Pakistan retreated significantly, tracking a sharp downturn in the international market as global investors navigated a volatile mix of geopolitical tensions and strengthening economic indicators.

According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of 24-karat gold per tola dropped by Rs4,900 to settle at Rs501,162.

This correction effectively wiped out the gains seen during the previous session on Saturday, when prices had climbed by Rs4,500. Similarly, the 10-gram gold rate fell by Rs4,201 to reach Rs429,665, while silver shed Rs145 to close at Rs8,417 per tola.

The domestic slump was a direct reflection of the global stage, where spot gold dipped 0.5% to $4,802.75 per ounce after hitting a one-week low of $4,736 earlier in the day.

The primary catalyst for this fluctuation was the surge in the US dollar and rising benchmark 10-year Treasury yields. As the dollar hit a one-week high, gold became more expensive for international buyers, while higher yields increased the opportunity cost of holding non-yielding bullion.

These shifts were exacerbated by renewed US-Iran tensions following the US takeover of an Iranian cargo vessel, an event that sent oil prices climbing by 5% and injected fresh uncertainty into markets.

Market experts noted that while gold initially dipped due to the news of renewed friction, it managed a slight recovery to hold near the $4,800 mark.