Gold prices moved higher across Pakistan on Thursday, tracking gains in the international market and renewed investor interest in safe-haven assets.
In the local market, the price of gold per tola climbed to Rs483,962 after gaining Rs4,400 during the day. Rates for 10 grams also increased by Rs3,772, settling at Rs414,919, according to the All-Pakistan Gems and Jewellers Sarafa Association.
The rise comes a day after prices had dropped sharply. On Wednesday, gold per tola had fallen by Rs5,500 to close at Rs479,562.
Silver also followed the upward trend. Its price increased by Rs55, taking it to Rs7,821 per tola.
Global market supports local trend
Internationally, gold prices recovered strongly after recent losses. The global rate rose by $44 to reach $4,616 per ounce, including a $20 premium.
Spot gold was up nearly 2 percent during early trading, recovering from its lowest level since late March. US gold futures also recorded gains, rising close to 2 percent.
A softer US dollar played a key role in the rebound, making gold cheaper for buyers using other currencies. At the same time, oil prices showed some weakness after recent volatility.
Market analysts said growing uncertainty in the Middle East is adding support to gold prices. Reports suggest rising tensions involving the US and Iran, which has led investors to turn to safer assets.
There are also expectations that demand for gold could strengthen if geopolitical risks increase further. Some analysts noted that gold is beginning to respond more clearly to global uncertainty, which is usually seen as a positive signal for the metal.
Despite the recent recovery, gold has lost around 12 percent since the conflict began. Higher energy prices have raised concerns about inflation, which could push interest rates up. This tends to limit gains in gold, as it does not offer returns like interest-bearing assets.
Investors are also watching US economic data closely. The latest Personal Consumption Expenditures figures are expected to provide further direction on inflation and interest rate policy.
Other precious metals also recorded gains. Silver rose around 3 percent in the global market, while platinum and palladium moved higher as well. However, all three metals remain on track for a second consecutive monthly decline.
Read next: Gold price finally slips below Rs525,000 per tola in Pakistan
