Gold prices in Pakistan - July 25

KARACHI: Gold prices in Pakistan edged higher on Saturday, tracking gains in the international bullion market.

According to rates issued by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of 24-karat gold per tola increased by Rs300 to Rs427,736, up from Rs427,436 a day earlier.

The price of 10 grams of 24-karat gold also rose by Rs257, reaching Rs366,714, compared with Rs366,457 on the previous trading day.

In the international market, the price of gold gained $3 to $4,053 per ounce, up from $4,050.

Meanwhile, silver prices declined in the local market. The price of silver per tola fell by Rs12 to Rs6,297, down from Rs6,309.

Gold prices drew support from heightened geopolitical tensions in the Middle East, as investors monitored the escalating conflict and its potential impact on global inflation and monetary policy.

Houthis claim strike on Saudi Arabia as conflict deepens

Tehran-backed Houthi rebels claimed responsibility for a missile attack on the southern Saudi city of Jizan on Saturday, while US President Donald Trump said he had not yet decided whether to authorize broader military strikes against Iran.

Despite the latest uptick, gold has remained under pressure in recent months amid expectations that the US Federal Reserve could keep interest rates elevated for longer.

Higher interest rates increase the opportunity cost of holding non-yielding assets such as gold, making interest-bearing investments more attractive to investors.

Analysts expect gold prices to remain volatile in the coming days as markets closely watch developments in the Middle East, movements in 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 and economic uncertainty, gold remains highly sensitive to shifts in global risk sentiment and interest rate expectations.