Gold prices in Pakistan moved higher on Monday, recovering part of the losses recorded over the weekend as international bullion prices strengthened.
According to the All Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of gold rose by Rs1,700 per tola to reach Rs428,436 in the local market.
The price of 10 grams of gold also increased by Rs1,457, taking it to Rs367,314.
The latest rise came after a sharp decline on Saturday, when gold had fallen by Rs3,700 per tola to settle at Rs426,736.
The upward trend was driven by gains in the international market, where gold climbed by $17 to $4,060 per ounce, including a premium of $20.
Silver also posted strong gains in Pakistan, with the price increasing by Rs54 per tola to Rs6,291.
Globally, spot gold rose 0.6 percent to $4,063.35 per ounce, while US gold futures edged up 0.1 percent to $4,053.70.
Market sentiment improved after oil prices dropped sharply, easing worries that higher energy costs could fuel inflation and push interest rates even higher. The shift followed comments from US President Donald Trump, who said talks with Iran were expected on Monday and stopped short of announcing fresh military action.
Brent crude fell nearly 6 percent after the remarks.
A weaker US dollar also supported gold by making the precious metal cheaper for buyers using other currencies.
Tim Waterer, Chief Market Analyst at KCM Trade, said gold had started the week on a positive note but gains remained limited because uncertainty over the Middle East and oil prices continued to weigh on investor confidence.
Investors are now watching a series of key US economic reports due this week, including jobs data and the closely followed nonfarm payrolls report.
Stronger than expected figures could reinforce expectations of higher US interest rates, which may limit further gains in gold prices.
Read next: Pakistan’s inflation returns to single digits in July