Gold rates in Pakistan rose sharply on Monday, tracking gains in the international market after fresh turmoil in the Middle East sent investors rushing towards safe assets.
In the local market, the rate of gold per tola jumped by Rs13,300 to reach Rs563,862, according to rates shared by the All Pakistan Gems and Jewellers Sarafa Association. The increase came just two days after gold had already posted a strong gain on Saturday, when it rose by Rs10,000 to settle at Rs550,562 per tola.
The price of 10 grams of gold also moved higher. It climbed by Rs11,402 to reach Rs483,420.
Silver followed the same trend. Its price increased by Rs188, taking it to Rs10,050 per tola.
Global rally drives local surge
The rise in local prices came as international gold rates climbed to their highest level in more than four weeks. Spot gold was trading between $5,349 and $5,376 per ounce in early trade on Monday, after gaining as much as 2 percent during the session. US gold futures also rose, reaching around $5,389 per ounce.
International markets reacted strongly after the US and Israel carried out major strikes on Iran. The attacks reportedly killed Iran’s Supreme Leader Ayatollah Ali Khamenei and were followed by further military exchanges between Israel and Iran, including strikes on Tehran and missile barrages in response.
The sharp escalation has raised fears of wider instability in the Middle East. Investors often turn to gold during times of political tension and economic uncertainty because it is seen as a safer place to store wealth.
Kyle Rodda, a senior financial market analyst at Capital.com, said the latest developments have created strong incentives for both sides to continue escalating the conflict. He warned this could lead to a chaotic and uncertain environment that may not end quickly, which would likely remain supportive for gold.
Another analyst, Ross Norman, described gold as a key measure of global uncertainty. He said the current situation could push prices to fresh record highs as the world enters a new period of geopolitical strain.
Despite the strong rally, gains in gold were partly limited by a stronger US dollar. The US dollar index rose by 0.27 percent, making gold more expensive for buyers using other currencies.
