Gold prices increased in Pakistan on Tuesday, following a rise in the international market. The price of gold per tola rose by Rs6,200 to reach Rs539,562.
The rate for 10 grams of gold also moved higher. It increased by Rs5,316 and was sold at Rs462,587, according to the All Pakistan Gems and Jewellers Sarafa Association.
The increase came a day after prices had fallen. On Monday, gold per tola had dropped by Rs6,500 and settled at Rs533,362.
Global market pushes prices higher
Gold prices also moved up in the international market. The global rate increased by $62 and reached about $5,168 per ounce, including a $20 premium.
In early trading, spot gold was reported around $5,161.54 per ounce, while US gold futures for April delivery rose to about $5,171.10. Later in the session, prices moved slightly higher again.
Market analysts linked the rise to a weaker US dollar and lower oil prices. A weaker dollar often makes gold cheaper for buyers using other currencies, which can increase demand.
Read more: SBP leaves key interest rate unchanged at 10.5%
The US dollar index slipped by around 0.4 percent during trading.
Analysts also said comments from US President Donald Trump played a role. He suggested that the war in the Middle East could end soon. Such remarks raised hopes that global tensions might ease.
Lower energy prices and the possibility of reduced inflation could also affect interest rate decisions by central banks. When interest rates remain lower, gold often becomes more attractive for investors because it does not offer interest returns.
Oil prices also dropped by more than 5 percent after the remarks, which added to the shift in market sentiment.
However, uncertainty remains. President Trump also warned that US attacks could increase if Iran attempts to block tanker traffic through the Strait of Hormuz. The route carries around one fifth of the world’s oil supply.
Silver prices in Pakistan also increased. The price of silver per tola climbed by Rs460 and reached Rs9,354 in the local market.
Read next: Gold price jumps in Pakistan following global trend
