KARACHI: Gold prices in Pakistan increased on Monday, August 17, in line with gains in international bullion prices amid continued geopolitical uncertainty.

According to rates issued by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of 24-karat gold rose by Rs2,000 per tola to Rs461,936 from Rs459,936 in the previous session.

The price of 24-karat gold per 10 grams also increased by Rs1,715 to Rs396,035 from Rs394,320.

In the international market, gold prices rose by $20 to $4,395 per ounce from $4,375, according to the association.

Silver prices

Silver prices also increased in the local market. The price of silver rose by Rs80 per tola to Rs7,029 from Rs6,951 in the previous session.

Investors continued to closely monitor developments in the Middle East as Iran and the United States remained at odds over efforts to reach a permanent end to the conflict in the Gulf.

Oil prices also rose on Monday as fading expectations of a US-Iran peace breakthrough and slower tanker traffic through the Strait of Hormuz reinforced geopolitical risk concerns in the market.

Brent crude futures rose as much as 1% to $89.40 per barrel and were last trading up 72 cents at $89.20 by 0229 GMT. US West Texas Intermediate crude futures rose 44 cents to $82.83 per barrel.

Both contracts gained more than 5% last week following attacks on tankers operated by Abu Dhabi National Oil Company in the Strait of Hormuz and on a Saudi Aramco refinery.

Gold is traditionally considered a safe-haven asset during periods of geopolitical and economic uncertainty. Its price is sensitive to changes in global risk sentiment, inflation expectations and interest-rate expectations.