Gold prices witness sharp increase in Pakistan — August 5, 2026

KARACHI: Gold prices surged in Pakistan on Wednesday, August 5, 2026, in line with a strong upward trend in the international bullion market.

According to the All Pakistan Sarafa Gems and Jewellers Association, the price of 24-karat gold per tola jumped by Rs10,000 to Rs437,936 from Rs427,936 in the previous session.

Similarly, the price of 10 grams of 24-karat gold increased by Rs8,573 to Rs375,459, compared with Rs366,886 a day earlier.

In the international market, gold prices rose by $100 to $4,155 per ounce from $4,055 per ounce, the association said.

Silver prices also recorded gains in the local market. The price of silver per tola increased by Rs273 to Rs6,624 from Rs6,351 in the previous session.

The rise in gold prices came as the US dollar remained subdued, making dollar-denominated bullion more attractive to holders of other currencies.

Meanwhile, oil prices steadied after sharp declines over the previous two sessions. Lower oil prices can ease inflationary pressures, influencing expectations about future interest rate decisions.

Market participants also kept a close watch on developments in the Middle East. Qatar said mediators were making progress in efforts to reduce tensions following the US-Iran conflict, although Tehran denied US President Donald Trump’s assertion that talks were already underway.

“Gold’s relation with oil is still intact as oil prices have a tremendous impact on the global economy in terms of inflationary pressure. If we get a very clear roadmap to further de-escalation in tensions, gold prices could move higher,” said Kelvin Wong, Senior Market Analyst at OANDA.

Gold prices also found support from renewed geopolitical uncertainty in the Middle East, as investors assessed its potential impact on global inflation, economic stability and monetary policy.

Despite Wednesday’s sharp rally, analysts said gold is likely to remain volatile in the coming days as markets closely monitor geopolitical developments, movements in the US dollar, key economic data releases 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.