Gold prices in Pakistan climbed sharply on Wednesday, reversing losses seen in the previous two sessions as international rates moved higher amid shifting global economic signals.
According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of gold per tola rose by Rs11,100 in a single day, reaching Rs488,962 in the local market. Likewise, the price of 10-gram gold increased by Rs9,517 to settle at Rs419,206.
Just a day earlier, on Tuesday, gold had slipped to Rs477,862 per tola after a drop of Rs2,100, highlighting the recent volatility in the market.
Silver prices also moved upward, gaining Rs223 per tola to reach Rs8,072.
International trends drive local surge
The rise in domestic prices came as global gold markets posted strong gains. International spot gold climbed about 2.7 percent to $4,680.91 per ounce, touching its highest level since late April. US gold futures also rose by a similar margin.
Market movement was influenced by easing geopolitical tensions after comments from US President Donald Trump suggesting progress towards a possible understanding with Iran. Reports of a fragile ceasefire holding helped reduce demand for safe-haven assets tied to energy and conflict risks, although gold still gained on broader market uncertainty.
Analysts said the softer tone in oil markets and a slight dip in the US dollar also supported gold’s rebound. A weaker dollar typically makes gold cheaper for buyers holding other currencies, lifting demand.
Market outlook remains uncertain
Despite the recent upswing, experts believe gold may continue to react sharply to developments around geopolitics, inflation trends and US economic data expected later this week.
Market watchers are closely awaiting the US non-farm payrolls report, which could offer clues on the Federal Reserve’s next policy move. Strong labour data could keep interest rates elevated, which usually limits gold’s appeal as it does not offer yield.
Analysts note that while higher oil prices can fuel inflation concerns and support gold in the long run, they can also influence interest rate expectations, keeping markets on edge.
Other precious metals also rise
The rally was not limited to gold. Silver posted a stronger gain of 4.6 percent, rising to $76.16 per ounce in international trade. Platinum climbed 2.9 percent to $2,009.25, while palladium increased 2.4 percent to $1,521.50.
Market observers say precious metals are likely to remain sensitive to global headlines in the coming days, with investor sentiment shifting quickly based on economic data and geopolitical updates.
