KARACHI: Gold prices surged in Pakistan on Friday, August 7, 2026 following a sharp rise 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 Rs5,100 to Rs454,336, up from Rs449,236.
Similarly, the price of 10 grams of 24-karat gold rose by Rs4,372 to Rs389,519, compared with Rs385,147 a day earlier.
In the international market, gold gained $51 to reach $4,319 per ounce, up from $4,268, the association said.
Silver prices also registered an increase in the local market. The price of silver per tola climbed by Rs280 to Rs6,939, compared with Rs6,659 previously.
Over the past three trading sessions, the price of gold has risen by Rs26,400 per tola, while the price of 10 grams has increased by Rs22,633.
Global Factors Drive Gold Higher
Gold prices drew support from a weaker US dollar, making dollar-denominated bullion more attractive to buyers holding other currencies.
Meanwhile, oil prices extended their gains on Friday amid renewed concerns over shipping through the Strait of Hormuz after Iran, in coordination with Oman, proposed restricting the passage of vessels deemed hostile and imposing heavy fines on those violating the proposed regulations.
Brent crude futures rose 99 cents, or 1.2%, to $83.48 a barrel, while US West Texas Intermediate (WTI) crude futures gained 85 cents, or 1.1%, to $78.84.
According to Iran’s Fars News Agency, a parliamentary committee is reviewing draft legislation that would prohibit US, Israeli and other vessels considered hostile from transiting the Strait of Hormuz and impose fines of up to 20% of the cargo’s value on violators.
Investors also continued to monitor developments in the Middle East. Qatar said mediators were making progress in efforts to ease regional tensions following the US-Iran conflict, although Tehran denied US President Donald Trump’s claim that negotiations were already underway.
“Gold’s relationship with oil is still intact, as oil prices have a tremendous impact on the global economy through inflationary pressures. If we get a very clear roadmap for further de-escalation in tensions, gold prices could move higher,” said Kelvin Wong, Senior Market Analyst at OANDA.
Analysts expect gold prices to remain volatile in the coming days as investors closely watch 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 expectations.