Gold prices in Pakistan moved higher on Tuesday, with local rates climbing sharply despite mixed trends in the international bullion market.
According to figures released by the All-Pakistan Gems and Jewellers Sarafa Association, the price of gold per tola increased by Rs4,100 to settle at Rs492,462.
The price of 10-gram gold also rose by Rs3,515, taking it to Rs422,206.
The increase came a day after gold prices had dropped significantly in the local market. On Monday, the price per tola had fallen by Rs5,300 to close at Rs488,362.
Silver prices also recorded a strong increase. The rate of silver per tola went up by Rs395 to reach Rs8,908.
In the international market, gold prices remained volatile as investors reacted to developments surrounding tensions between the US and Iran, along with expectations linked to upcoming US inflation data.
Spot gold slipped 0.8 percent to $4,698.22 per ounce after earlier touching its highest level in nearly three weeks. US gold futures for June delivery were also lower at $4,706.10 per ounce.
Market analysts said stronger oil prices and a firmer US dollar added pressure on gold, while investors remained cautious ahead of key inflation figures expected later in the day.
Concerns over the Middle East situation continued to shape sentiment in global markets. US President Donald Trump said efforts for a ceasefire with Iran were facing difficulties after Tehran rejected a US proposal linked to the conflict.
Analysts noted that rising crude oil prices could increase inflation risks, which may push interest rates higher for a longer period. Higher rates usually reduce the appeal of gold because the metal does not offer returns like interest-bearing assets.
The US dollar also gained ground, making gold more expensive for buyers using other currencies.
Ole Hansen, head of commodity strategy at Saxo Bank, said gold was still trading within a broad range, with support seen near $4,500 and resistance close to $4,757.
Other precious metals also remained under pressure internationally. Spot silver fell 2.4 percent to $84.05 per ounce, while platinum and palladium also recorded losses.
Read next: Oil prices jump to highest level since 2022
