Gold prices surged in Pakistan on Wednesday, with the domestic market recording a sharp increase as international bullion climbed to its highest level in a month.
According to the All Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of 24 karat gold rose by Rs10,000 per tola to Rs437,936.
The rate for 24 karat gold per 10 grams also climbed by Rs8,573 to Rs375,459, while 22 karat gold was priced at Rs344,183 per 10 grams.
Silver also moved higher. The price of 24 karat silver increased by Rs273 to Rs6,624 per tola, while the rate per 10 grams gained Rs235 to reach Rs5,679.
The rise in local prices came as gold extended its gains in global markets. Spot gold was trading around $4,157 per ounce, up nearly 2.1 percent from the previous session. During the day, prices touched $4,164.13 per ounce, the highest level since early July. US gold futures were also higher at $4,223.60 per ounce.
Market analysts said the weaker US dollar and lower Treasury yields made gold more attractive to investors. A softer dollar reduces the cost of gold for buyers using other currencies, often boosting demand.
Investor attention also remained fixed on upcoming US labour market data, which could shape expectations about the US Federal Reserve’s next interest rate decision.
Adding to market sentiment, US President Donald Trump said his administration had held “very good discussions” with Iran during talks on Tuesday.
Hopes that tensions in the Gulf could ease helped lower inflation concerns and pushed bond yields lower, creating a more favourable environment for gold.
Analysts noted that gold, which does not pay interest, typically becomes more appealing when bond yields decline. Traders have also slightly lowered expectations of a US interest rate increase in September, providing additional support to the precious metal.