KARACHI: Gold prices in Pakistan rose on Saturday, July 18, tracking gains in the international bullion market as investors weighed escalating geopolitical tensions in the Middle East against expectations that US interest rates could remain elevated for longer.
According to the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of 24-karat gold per tola increased by Rs2,400 to Rs424,236.
The price of 10 grams of 24-karat gold climbed by Rs2,057 to Rs363,713, while 10 grams of 22-karat gold gained Rs1,885 to Rs333,415.
In the international market, gold rose $24 to $4,018 per ounce.
Silver prices also moved higher. The price of silver per tola increased by Rs41 to Rs6,070, while 10 grams of silver gained Rs36 to Rs5,204.
In the global market, silver rose $0.41 to $55.91 per ounce, according to the association.
The gains came as investors monitored escalating tensions in the Middle East, with concerns that higher energy prices could fuel inflation and prompt the US Federal Reserve to keep interest rates higher for longer.
Iran launched fresh attacks on US allies in the Gulf on Saturday after a seventh consecutive night of US strikes targeting Iranian military sites, further escalating the conflict.
Kuwait was also hit by repeated missile and drone attacks, disrupting operations at a desalination plant and forcing the suspension of flights at Kuwait International Airport.
Brent crude oil prices have surged about 16% over the past week, adding to inflation concerns in global markets.
Despite the latest increase, bullion has remained under pressure in recent months as expectations of prolonged high interest rates have reduced demand for the non-yielding precious metal.
Higher interest rates increase the opportunity cost of holding gold, making interest-bearing assets more attractive.
Analysts expect gold prices to remain volatile as investors closely watch developments in the Middle East, the direction of 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 continues to be influenced by both geopolitical risks and shifting interest rate expectations.