Gold prices in Pakistan moved higher on Tuesday, following an upward trend in the international market, offering some relief after recent declines.
In the local market, the price of gold per tola rose by Rs2,800 to reach Rs478,762. Similarly, the rate for 10 grams increased by Rs2,401, settling at Rs410,461, according to data released by the All-Pakistan Gems and Jewellers Sarafa Association.
The increase comes a day after gold had already posted gains, with the per tola rate hitting Rs475,962 on Monday after a Rs3,900 rise.
Global market sees mixed trend
Internationally, gold prices also recorded gains. The global rate increased by $28 to $4,560 per ounce, including a $20 premium. Spot gold was up 0.9 percent at $4,550.68 per ounce, while US gold futures for April delivery rose 0.5 percent to $4,580.70.
Despite the latest uptick, gold remains on track for its sharpest monthly decline in over 17 years. Prices have fallen more than 13 percent this month, marking the steepest drop since October 2008. However, on a quarterly basis, gold is still up around 5 percent, although it remains nearly 18.70 percent below its record high reached on January 29.
Market analysts say investors are balancing multiple factors. Gold is still being seen as a value buy at current levels, especially after recent declines. Lower oil prices, a softer dollar during the day, and relatively attractive entry points have supported prices.
At the same time, ongoing tensions in the Middle East have pushed investors towards the dollar, which is gaining strength as a preferred safe option. Rising energy costs linked to the conflict are also increasing concerns about inflation and the likelihood of higher interest rates.
The dollar is heading for its strongest monthly gain since July, as investors continue to move towards cash and safer assets.
Analysts warn that if key oil supply routes remain disrupted, energy prices could stay volatile, which may continue to weigh on gold in the near term.
Looking ahead, Goldman Sachs expects gold prices to reach $5,400 per ounce by the end of 2026, supported by central bank buying and possible monetary easing.
Meanwhile, silver prices in Pakistan also increased, rising by Rs260 to Rs7,784 per tola. In global markets, silver, platinum and palladium all posted gains during the session, though each metal has seen notable declines over the month.
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