Gold prices surge in Pakistan despite global market weakness

Gold prices in Pakistan rose sharply on Tuesday, even as international bullion markets showed weakness, driven by ongoing geopolitical tensions involving Iran and concerns over global inflation and commodity market volatility.

In the local market, the price of gold per tola increased by Rs4,100 to reach Rs492,462, according to rates issued by the All Pakistan Gems and Jewellers Sarafa Association. Similarly, the price of 10 grams of gold rose by Rs3,515 to Rs422,206.

Silver prices also moved upward in the domestic market, gaining Rs395 per tola to settle at Rs8,908, reflecting broader precious metal volatility.

In contrast, global bullion markets weakened. Spot gold declined by 1.4% to $4,669.33 per ounce, while US gold futures dropped 1.1% to $4,675.90 per ounce, according to international market data.

Analysts said international prices came under pressure amid renewed expectations that diplomatic engagement between the United States and Iran could ease tensions around the Strait of Hormuz, although uncertainty remains high.

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Market experts noted that gold continues to trade in a volatile consolidation range, with fluctuations driven by geopolitical risks and shifting investor sentiment. Some analysts believe major financial institutions are anticipating a possible diplomatic breakthrough in the coming months, while others remain skeptical about any lasting agreement.

Concerns over disruptions in global oil supply due to tensions in the Strait of Hormuz have also supported higher crude oil prices, indirectly influencing inflation expectations and safe-haven demand for gold.

Currency markets remained relatively stable, with the Pakistani rupee appreciating slightly by Rs0.01 against the US dollar, closing at 278.66 compared to the previous session.

Despite short-term fluctuations, analysts maintain that gold’s medium-term outlook remains supported as long as global prices stay above key resistance levels amid ongoing geopolitical uncertainty.