Gold prices rise in Pakistan after US strikes on Iran

KARACHI: Gold prices in Pakistan rose sharply on Thursday after fresh US military strikes on Iran heightened geopolitical tensions in the Middle East, boosting demand for safe-haven assets.

The price of 24-karat gold increased by Rs3,600 per tola to Rs433,836, according to rates issued by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA).

Similarly, the price of 10 grams of 24-karat gold rose by Rs3,086 to Rs371,944, while 10 grams of 22-karat gold gained Rs2,829 to Rs340,961.

In the international market, gold climbed by $36 to $4,113 per ounce.

Silver prices in the local market remained unchanged, with per tola silver holding steady at Rs6,421 and 10 grams of silver at Rs5,504. International silver prices also remained unchanged at $59.42 per ounce, the association said.

The rise in gold prices came after the United States launched fresh strikes on Iran in an effort to keep the Strait of Hormuz open to commercial shipping. The escalation triggered Iranian attacks on Kuwait and Bahrain, further raising concerns over regional stability.

The attacks also pushed oil prices higher, with Brent crude rising about 1% to $78.80 per barrel. However, prices remained well below their late-April peak of more than $120 per barrel.

Iranian media reported that the strikes targeted areas along the country’s southern coast, stretching from the Strait of Hormuz to the Gulf of Oman. Among the locations reportedly hit were Bandar Abbas, home to Iran’s largest port and key naval facilities, as well as the coastal cities of Konarak and Chabahar, near the Pakistan border.

Market analysts said heightened geopolitical uncertainty, currency movements and shifting investor sentiment continued to support demand for gold as a safe-haven asset.

They noted that gold remains a preferred hedge against inflation, currency depreciation and economic uncertainty, with future price movements likely to depend on global economic data, central bank policies and geopolitical developments.

Check here: SILVER RATE – DAILY UPDATES

Despite recent fluctuations, analysts noted that gold prices remain well below the record highs reached earlier this year, when geopolitical tensions involving the United States, Israel and Iran intensified concerns over inflation, strengthened the dollar and increased expectations of higher interest rates.