Gold prices in Pakistan moved higher on Tuesday, tracking gains in the international market after a volatile start to the week.
In the local market, the price of gold per tola rose by Rs16,300 to reach Rs464,062, according to data released by the All Pakistan Gems and Jewellers Sarafa Association. The rate for 10 grams also increased by Rs13,975, settling at Rs397,858.
The rebound follows a steep drop on Monday, when gold per tola had fallen by Rs43,600 in line with a slide in global prices.
Global uncertainty keeps market on edge
Internationally, gold prices showed mixed movement during the day. The global rate was reported at $4,413 per ounce, including a premium of $20. However, spot gold was slightly lower at $4,396.74 per ounce around 0820 GMT after recovering from earlier losses.
Prices had dropped more than 2 percent earlier in the session and had seen a much larger fall of over 8 percent on Monday, hitting their lowest level since late November before recovering partially.
Analysts linked the volatility to rising geopolitical tensions and unclear signals around possible talks between the US and Iran. Reports of missile exchanges in the Middle East added to investor uncertainty, keeping markets unsettled.
Market experts say such conditions often lead to quick shifts in gold prices as investors look for safer assets but also adjust positions due to liquidity needs.
Higher oil prices have also added another layer of pressure. Brent crude remained above $100 per barrel, raising concerns about inflation as transport and production costs rise.
While gold is often seen as a hedge against inflation, higher interest rates can reduce its appeal since it does not offer returns like other assets.
Meanwhile, silver prices in Pakistan rose by Rs570 to Rs7,454 per tola. In the global market, however, silver, platinum and palladium all recorded declines during the session.
Analysts expect gold to remain under pressure in the short term, with price movements likely to depend on developments in global conflicts, inflation trends and interest rate expectations.
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