Gold prices in Pakistan rose sharply on Saturday, tracking gains in the international market as global investors turned to the precious metal during uncertain economic conditions.
In the local market, the price of gold per tola increased by Rs6,100, reaching Rs539,862. Rates released by the All Pakistan Gems and Jewellers Sarafa Association showed that the price of 10 grams of gold also climbed by Rs5,230 to Rs462,844.
The latest increase follows a drop in prices a day earlier. On Friday, gold per tola had fallen by Rs3,400 to settle at Rs533,762.
Global market supports gold
The rise in local prices came as international gold rates moved higher. In the global market, gold gained $61 and reached $5,171 per ounce, including a $20 premium.
Market analysts say the recent movement in gold prices is linked to growing uncertainty in global markets. A weaker than expected jobs report from the US has raised fresh questions about the strength of the world’s largest economy.
Recent data showed the US economy lost more than 92,000 jobs in February. This was far worse than expectations, which had predicted the creation of around 59,000 jobs. The unemployment rate also edged up to 4.4 percent.
The figures have increased expectations that the US Federal Reserve may cut interest rates later this year. Market data shows traders are now expecting around 43 basis points of rate cuts by the end of the year, compared with about 35 basis points earlier.
Investors turn to safe assets
At the same time, tensions in the Middle East have also pushed investors towards safer assets such as gold.
During periods of geopolitical uncertainty, many investors prefer gold as a way to protect their wealth. The latest developments have again triggered interest in the metal across global markets.
Despite the recent rebound, gold prices have faced pressure in recent weeks due to a stronger US dollar and higher US bond yields. These factors often make gold less attractive to investors.
Alongside gold, silver prices also moved higher in Pakistan. The price of silver rose by Rs17 per tola to reach Rs8,931.
Market traders say gold prices in the coming days will largely depend on global economic signals, currency movements, and developments in international politics.
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