Gold prices in Pakistan continued their upward march on Thursday, with the precious metal climbing by Rs11,300 per tola as strong gains in the international market pushed local rates to a fresh high.
According to the All Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of gold rose to Rs449,236 per tola, up from Rs437,936 recorded a day earlier, when it had already gained Rs10,000.
The price of 10 grams of gold also moved higher, increasing by Rs9,688 to Rs385,147.
The rally in the domestic market mirrored a sharp rise in global bullion prices. In the international market, gold gained $113 to settle at $4,268 per ounce, including a premium of $20.
Silver prices also followed the upward trend. The price of silver increased by Rs35, taking it to Rs6,659 per tola in the local market.
Globally, gold climbed to its highest level in nearly seven weeks, extending its winning streak for a fourth straight session. Spot gold was trading around $4,271 per ounce after earlier touching its strongest level since June 18. US gold futures also moved higher to around $4,330 per ounce.
Market analysts said easing concerns over disruptions to shipping through the Strait of Hormuz helped reduce fears of prolonged inflation and aggressive interest rate increases in the United States. Reports of possible diplomatic progress involving Iran and Oman also improved investor sentiment.
Expectations of another US interest rate hike in September have softened over the past two days, providing additional support to gold. Lower interest rate expectations generally make the non-yielding metal more attractive to investors.
However, analysts warned that the outlook remains uncertain. While recent gains have been driven by improving geopolitical sentiment and changing interest rate expectations, upcoming US economic data, particularly Friday’s nonfarm payrolls report, could influence the next move in gold prices.
Among other precious metals, spot platinum and palladium extended their gains, while silver edged lower in international trading.