Gold prices in Pakistan moved higher on Wednesday, tracking gains in the international market as investor sentiment improved following easing geopolitical tensions.
According to the latest rates issued by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of 24-karat gold rose sharply by Rs15,700 per tola, reaching Rs504,162. The price of 24-karat gold per 10 grams also increased by Rs13,460 to settle at Rs432,237.
Meanwhile, 22-karat gold was also quoted higher in the domestic market at Rs396,231 per 10 grams, reflecting a broader upward trend in bullion prices.
Silver prices followed a similar pattern. The rate of 24-karat silver climbed by Rs440 per tola to Rs8,184, while the per 10-gram price increased by Rs377 to Rs7,016.
The upward movement in local prices comes despite a slight dip in global spot gold, which traded near $4,812 per ounce, down about $19 from the previous session. The decline followed reports that US President Donald Trump had agreed to pause planned military action against Iran for two weeks, easing fears of further escalation in the region.
However, earlier in the day, gold had surged to a near three-week high as markets reacted to the temporary halt in hostilities and renewed hopes for negotiations between the two countries. The metal gained more than 2 percent at one point, supported by expectations that reduced tensions could stabilise energy markets and slow inflation.
Analysts say gold remains sensitive to geopolitical developments and interest rate expectations. While it is often seen as a safe option during uncertain times, higher interest rates can reduce its appeal since it does not offer any yield.
Market participants are now closely watching upcoming signals from the US Federal Reserve, including minutes from its latest policy meeting, for further direction on interest rates.
The recent volatility also highlights how quickly gold prices can shift in response to global events, with investors continuing to balance concerns over inflation, conflict, and monetary policy.
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