KARACHI: Gold prices surged in Pakistan on Thursday, tracking a sharp rise in the international bullion market.
According to rates issued by the All Pakistan Sarafa Gems and Jewellers Association, the price of 24-karat gold per tola increased by Rs11,300 to Rs449,236.
Similarly, the price of 10 grams of 24-karat gold rose by Rs9,688 to Rs385,147, while 10 grams of 22-karat gold gained Rs8,881 to Rs353,064.
In the international market, gold prices climbed by US$113 to US$4,268 per ounce, the association said.
Silver prices also moved higher in the local market. The price of silver per tola increased by Rs35 to Rs6,659, while the price of 10 grams rose by Rs30 to Rs5,709.
Globally, silver gained US$0.35 to US$61.80 per ounce.
Gold prices drew support from a weaker US dollar, which made dollar-denominated bullion more attractive to holders of other currencies.
Meanwhile, oil prices held steady as markets remained cautious over whether diplomatic efforts involving Iran and Oman could restore shipping through the Strait of Hormuz. Reports of attacks on Saudi oil tankers in the Red Sea and the Gulf of Aden also renewed concerns over global supply.
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Investors continued to monitor developments in the Middle East. Qatar said mediators were making progress in efforts to ease tensions following the US-Iran conflict, although Tehran denied US President Donald Trump’s claim 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.
Analysts said gold is likely to remain volatile in the coming days as investors track 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 changes in global risk sentiment, inflation expectations and interest rate outlooks.