Gold prices in Pakistan rose sharply on Friday, tracking gains in the international market, with both local buyers and investors feeling the impact of the latest upward shift.
In the local market, gold per tola increased by Rs7,250 during the day to reach Rs439,966. The price of 10-gram gold also moved up by Rs6,525, settling at Rs375,947, according to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA).
This comes just a day after prices had dropped by Rs9,720 per tola on Thursday, showing how quickly the market has been swinging in recent sessions.
Silver also saw strong movement, climbing Rs190 to reach Rs7,079 per tola, marking a fresh all-time high in the domestic market.
Global uncertainty keeps bullion in focus
The rise in local rates followed a similar trend in the international market, where gold gained $72 to trade at $4,175 per ounce, with an added premium of $20.
In broader global trade, spot gold held largely steady at $4,217.95 per ounce on Friday morning but was still down more than 2 percent over the week. US gold futures, however, edged up 3 percent to $4,238.50.
Market watchers say gold is currently being pulled in different directions. On one side, geopolitical developments, including renewed talk of a possible Iran-US deal, have eased oil prices and reduced some safe-haven demand. On the other hand, inflation concerns and interest rate expectations continue to support bullion.
Analysts note that expectations of higher interest rates from major central banks are increasing the cost of holding gold, which does not offer returns. This has kept the metal under pressure despite short-term gains.
US inflation data has also added to uncertainty, with producer prices rising more than expected in May and consumer inflation crossing 4 percent for the first time in three years.
Attention is now turning to the US Federal Reserve’s policy meeting scheduled for June 16 to 17, which will be the first led by new Fed Chair Kevin Warsh.
Among other precious metals, silver slipped 0.7 percent to $66.91 per ounce in global trade, while platinum remained unchanged at $1,719.92. Palladium moved against the trend, rising 3.1 percent to $1,308.39.
For households and small investors in Pakistan, the latest surge means higher costs for jewellery purchases and continued uncertainty for those treating gold as a savings option.
Read next: Pakistan’s forex reserves rise as SBP reports weekly increase
