Gold prices in Pakistan climbed sharply on Thursday, tracking a strong rally in the international market as investors moved back towards the safe-haven metal amid a weaker US dollar and easing tensions in the Middle East.
In the local bullion market, the price of gold per tola rose by Rs7,800 to reach Rs496,762, according to rates released by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA).
The price of 10-gram gold also moved higher, gaining Rs6,687 to settle at Rs425,893.
The latest increase came a day after gold had already posted a major jump. On Wednesday, the price of one tola had surged by Rs11,100 to close at Rs488,962.
Internationally, gold prices continued their upward trend for a third straight session. The global rate increased by $78 to reach $4,744 per ounce, including a premium of $20.
Market analysts said the softer US dollar helped make gold cheaper for buyers using other currencies, encouraging more demand for bullion.
Spot gold was trading around $4,738 per ounce in international markets, while US gold futures for June delivery rose to nearly $4,749 per ounce.
Investors were also closely watching developments related to the Iran conflict after US President Donald Trump predicted a possible end to the war. Reports suggested Tehran was reviewing a US-backed peace proposal, raising hopes of a longer-term agreement even though major issues remain unresolved.
Tim Waterer, chief market analyst at KCM Trade, said gold was finding support from a weaker dollar and lower oil prices as hopes for a lasting ceasefire improved market sentiment.
The US dollar remained near a more than three-month low, while benchmark US Treasury yields also eased this week, reducing the opportunity cost of holding non-yielding assets such as gold.
Oil prices slipped below $100 per barrel as traders grew more hopeful about stability in the Middle East. Analysts said lower oil prices could ease inflation concerns, which in turn may influence expectations around future US interest rates.
Investors are now waiting for the upcoming US employment report, which could offer fresh clues about the strength of the American economy and the Federal Reserve’s next policy move.
Meanwhile, silver prices in Pakistan also recorded a sharp rise. Silver per tola increased by Rs373 to reach Rs8,445.
In international markets, spot silver gained 2.6 percent to $79.31 per ounce. Platinum rose 1 percent, while palladium added 1.3 percent.
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