Gold prices in Pakistan have moved higher again and are now close to a new record, following a strong rebound in the international market.
On Wednesday, the price of gold per tola rose by Rs14,800 to reach Rs529,162 in the local market. The increase came as global prices also climbed sharply, according to rates shared by the All Pakistan Gems and Jewellers Sarafa Association.
The price of 10 gram gold also went up. It was sold at Rs453,671 after gaining Rs12,689 during the day.
This rise followed a sharp jump a day earlier. On Tuesday, gold per tola increased by Rs24,000 to settle at Rs514,362, marking one of the biggest single day gains in recent times.
Silver prices also edged higher. The price of silver rose by Rs109 to reach Rs9,255 per tola.
Global market drives local rates
In the international market, gold prices climbed as investors moved back to safe assets amid fresh geopolitical tensions. Gold rose by $148 to reach $5,064 per ounce, including a premium of $20.
Spot gold was trading near $5,076 per ounce by early Wednesday, after posting a strong rally the previous day. On Tuesday, prices surged nearly 6 percent, the biggest daily rise in more than 17 years. Last week, gold had touched a record high of $5,594.82 per ounce.
US gold futures for April delivery also moved up and were trading above $5,097 per ounce.
Market sentiment was influenced by renewed tensions between the US and Iran. The US military said it had shot down an Iranian drone that approached an American aircraft carrier in the Arabian Sea. Such developments often push investors towards gold, which is seen as a safer option during uncertain times.
Gold had earlier fallen to around $4,403 per ounce on Monday after a heavy sell off. Analysts say the recent dip was not unexpected after such a strong rally.
An analyst at ANZ said a correction was expected after the sharp rise and added that the broader picture had not changed much. Geopolitical risks and economic concerns, the analyst noted, continue to support gold prices.
With global prices firming up again, local gold rates in Pakistan are likely to remain sensitive to movements in the international market in the coming days.
