Gold prices in Pakistan moved up slightly on Monday, tracking gains in the international market as investors remained cautious amid ongoing geopolitical tensions.
In the local market, the price of gold rose by Rs800 per tola to reach Rs493,962. Similarly, the rate for 10 grams increased by Rs686, settling at Rs423,492, according to figures released by the All-Pakistan Gems and Jewellers Sarafa Association.
The latest increase follows a stronger jump over the weekend, when gold gained Rs2,300 per tola on Saturday to close at Rs493,162. The recent trend shows that prices are continuing to react to developments in the global market rather than local demand alone.
Global uncertainty keeps gold in focus
Internationally, gold prices showed mixed movement. The global benchmark rose by $8 to $4,716 per ounce, although spot prices later dipped slightly during trading. Analysts say the market remains sensitive to geopolitical risks, particularly tensions linked to the ongoing conflict involving Iran.
Rising oil prices have added another layer of concern. Brent crude climbed above $105 per barrel as supply routes remained under pressure, pushing up fears of higher inflation worldwide. This has kept investors alert, as gold is often seen as a safer option during uncertain times.
However, the outlook is not entirely straightforward. Higher interest rates tend to reduce the appeal of gold, since it does not offer any yield. With central banks, including the US Federal Reserve, set to review policy this week, traders are watching closely for signals on future rate decisions and how they may shape demand for bullion.
An independent market analyst noted that while tensions have not sharply escalated, they remain enough to keep volatility in place and limit strong buying interest from some investors.
Meanwhile, silver prices in Pakistan stayed unchanged at Rs8,049 per tola, showing a relatively stable trend compared to gold.
Overall, the market is expected to remain sensitive in the coming days, with global political developments and central bank decisions likely to guide price movements.
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