Gold prices moved higher in Pakistan on Monday, tracking a modest recovery in the international market after recent losses.
In the local market, the price of gold per tola rose by Rs900 to reach Rs477,162. Rates for 10 grams also increased by Rs772, settling at Rs409,089, according to figures released by the All-Pakistan Gems and Jewellers Sarafa Association.
The latest rise comes after a decline over the weekend, when gold per tola had dropped by Rs600 to close at Rs476,262 on Saturday.
Silver prices also followed the upward trend, gaining Rs26 to reach Rs8,099 per tola.
Global market shows cautious recovery
Internationally, gold prices edged up slightly on Monday after touching their lowest level in more than six weeks earlier in the day. Spot gold was trading near $4,546 per ounce, while US gold futures for June delivery were slightly lower at around $4,549.
Market analysts say the recent drop in gold prices had gone too far, prompting some buying interest that helped prices stabilise. However, gains remained limited as concerns over inflation and interest rates continue to weigh on sentiment.
Higher global bond yields have reduced the appeal of gold, which does not offer any fixed return. Investors are increasingly expecting interest rates to stay higher for longer, with some even pricing in a possible rate hike by the end of the year.
At the same time, rising oil prices have added to inflation worries. Brent crude climbed above $110 per barrel amid ongoing tensions in the Middle East, particularly due to disruptions linked to the Iran conflict and uncertainty around key shipping routes.
Analysts say these factors are likely to keep gold prices volatile in the near term. Some global banks have already revised down their short-term outlook for gold, citing softer investor demand.
Despite this, the longer-term outlook for gold remains supported by economic uncertainty and geopolitical risks, which often drive investors towards safe-haven assets.
