Gold prices increase in Pakistan - May 12, 2025

KARACHI: Gold prices in Pakistan rose on Tuesday, May 12, 2026, in line with the international bullion market amid fluctuations in global economic conditions.

The prices of gold increased in the local market on Tuesday, with 24 karat gold per tola rising by Rs 4,100 to settle at Rs 492,462 compared to Rs 488,362 on the previous trading day, according to rates issued by the All Pakistan Sarafa Gems and Jewellers Association.

Similarly, the price of 10 grams of 24 karat gold increased by Rs 3,515 to Rs 422,206 from Rs 418,691, whereas 10 grams of 22 karat gold went up by Rs 3,222 to Rs 387,036 against Rs 383,814.

In the international market, the price of gold increased by $41 to $4,701 per ounce from $4,660.

Meanwhile, the price of silver per tola increased by Rs 395 to Rs 8,908, while the price of 10 grams of silver rose by Rs 339 to Rs 7,637.

The price of silver in the international market increased by $3.95 to $84.24 per ounce.

Market analysts attributed the volatility in bullion prices to shifting global geopolitical developments, particularly tensions and diplomatic signals involving the United States and Iran, along with broader economic uncertainty.

The United States and Iran recently exchanged fire in what was described as the most serious test yet of their month-long ceasefire. However, Iran later said the situation had returned to normal, while the US stated it did not seek further escalation.

“The comments from the Trump administration that the ceasefire is holding, along with lingering optimism about a potential US-Iran deal, are supporting the gold market for now,” said Kyle Rodda, senior financial market analyst at Capital.com.

Despite short-term fluctuations, analysts maintained a positive long-term outlook for gold, citing its continued appeal as a safe-haven asset during periods of economic and geopolitical uncertainty.

SILVER RATE – DAILY UPDATES

They added that gold remains attractive due to its intrinsic value, limited supply, and relative independence from government policies, making it an effective hedge against inflation, currency depreciation, and market volatility.

Historically, periods of global uncertainty have driven investors toward bullion while reducing demand for riskier assets such as equities and speculative currencies.

Gold continues to serve both as a traditional ornamental commodity and a key financial safe-haven asset, with demand typically strengthening during times of global instability.