Gold prices surge sharply in Pakistan

Gold prices in Pakistan recorded a major increase on Wednesday, following a strong rally in the international bullion market amid easing geopolitical tensions between the United States and Iran.

According to the All-Pakistan Gems and Jewellers Sarafa Association, the price of gold per tola in the local market surged by Rs11,100, reaching Rs488,962. The price of 10 grams of gold also climbed by Rs9,517 to settle at Rs419,206.

In global markets, spot gold rose nearly 3 per cent to $4,693.97 per ounce after touching its highest level in more than a week. US gold futures also gained significantly, reaching $4,705.60 per ounce during trading.

Market analysts linked the sharp increase to improving investor sentiment following signs of reduced tensions between Washington and Tehran. Easing geopolitical uncertainty has influenced expectations regarding inflation, global stability and future monetary policy decisions, factors that often impact precious metal prices.

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Silver prices also moved upward in Pakistan, increasing by Rs223 per tola to reach Rs8,072. International silver prices similarly posted strong gains during the trading session.

Commodity experts said gold has entered an important technical range in the global market. Analysts noted that if international prices maintain momentum above the $4,750 level, bullion could move towards $4,900 and possibly even touch the $5,000 mark in the coming weeks.

However, experts also warned that any renewed geopolitical tensions or market uncertainty could reverse the rally and push prices lower again.

Meanwhile, the Pakistani rupee posted a slight gain against the US dollar in the inter-bank market. The local currency appreciated marginally by Rs0.03, with the dollar closing at Rs278.72 compared to the previous session’s Rs278.75.