Gold prices in Pakistan moved higher on Monday, following gains in the global market, while silver saw a slight drop.
According to the All-Pakistan Gems and Jewellers Sarafa Association, the price of gold per tola rose by Rs1,100 to settle at Rs491,462. Similarly, the rate for 10 grams increased by Rs943, reaching Rs421,349.
Just two days earlier, on Saturday, gold prices had remained unchanged at Rs490,362 per tola, indicating a fresh upward trend at the start of the week.
In contrast, silver prices moved in the opposite direction. The metal fell by Rs50 per tola and was traded at Rs7,744 in the local market.
Global trends keep market on edge
Internationally, gold prices showed mixed movement. The global rate stood at $4,687 per ounce after an increase of $11, including a premium of $20. However, spot gold slipped slightly during early trading hours, weighed down by a stronger US dollar and shifting expectations around interest rates.
Market sentiment remained cautious after strong economic data from the United States reduced hopes for a rate cut by the Federal Reserve. Higher interest rates tend to make gold less attractive, as it does not offer any yield compared to other investments.
Investors were also closely watching geopolitical developments, particularly tensions involving the United States and Iran.
Reports suggested that Washington may take a tougher stance if key oil routes remain blocked, adding to uncertainty in global markets. At the same time, discussions around a possible temporary ceasefire raised hopes of easing tensions.
Rising oil prices, driven by supply disruptions linked to the conflict, have added to inflation concerns worldwide. While gold is often seen as a safe option during periods of inflation, the current environment of high interest rates has limited its upward momentum.
Analysts noted that strong US jobs data and a firm dollar continue to influence gold prices, leaving investors cautious in the near term.
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