Gold prices moved higher in Pakistan on Wednesday, following gains in the international market.
In the local market, the price of gold per tola climbed by Rs3,700 during the day, reaching Rs543,262. The price of 10 grams of gold also increased by Rs3,172 to Rs465,759, according to rates shared by the All-Pakistan Gems and Jewellers Sarafa Association.
The increase came a day after a strong rise in the market. On Tuesday, the price of gold per tola had jumped by Rs6,200 to settle at Rs539,562.
In the international market, gold prices remained above the $5,000 mark despite some pressure from a stronger US dollar and higher US Treasury yields.
The global rate of gold increased by $37 to $5,205 per ounce, including a premium of $20.
However, spot gold slipped slightly by 0.1 percent to $5,183.82 per ounce by 1132 GMT. US gold futures for April delivery also dropped 1 percent to $5,191.60.
Analysts say the market has been moving within a narrow range in recent days. Carlo Alberto De Casa, an analyst at Swissquote, said gold has been holding comfortably above $5,000 despite short term pressure from currency movements and bond yields.
A stronger dollar often makes gold more expensive for buyers using other currencies. At the same time, higher bond yields reduce the appeal of gold because the metal does not offer interest.
Middle East tensions keep demand alive
Concerns about rising inflation and growing tensions in the Middle East are also influencing the market.
Oil prices recovered on Wednesday after falling earlier, raising worries that higher energy costs could push inflation up again. This has reduced expectations that central banks may cut interest rates soon.
The conflict involving the US, Israel and Iran has entered its second week, with both sides trading air strikes. The situation has also led to the shutdown of the Strait of Hormuz, a key route for global energy supplies. Nearly one fifth of the world’s oil and liquefied natural gas shipments pass through the narrow waterway.
Market watchers say such geopolitical tensions often increase demand for gold because investors see it as a safe place to park money during uncertain times.
Meanwhile, the price of silver in Pakistan remained unchanged on Wednesday at Rs9,354 per tola.
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