Gold prices moved higher in Pakistan on Monday, tracking gains in the global market as international rates strengthened and currency conditions supported bullion demand.
In the local market, the price of gold per tola climbed to Rs477,762 after an increase of Rs4,600 during the day, according to data shared by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA). The price of 10-gram gold also rose, reaching Rs409,603 after gaining Rs3,943.
This comes after a weaker session on Saturday, when gold per tola had slipped by Rs2,200 to settle at Rs473,162, showing continued volatility in the domestic market.
Silver also followed the upward trend, with the price of per tola silver increasing by Rs236 to reach Rs8,270.
Global market support pushes prices higher
Internationally, gold extended its gains, rising more than 1 percent on Monday. Spot gold was recorded at $4,559.07 per ounce, up 1.1 percent as of 0736 GMT, while US gold futures for June delivery climbed 0.8 percent to $4,559.80.
The rise in bullion prices came as uncertainty around US-Iran diplomatic developments influenced financial markets. Hopes of progress in negotiations briefly pressured the US dollar and eased oil prices, which helped improve the inflation outlook and supported demand for gold.
Market participants also reacted to mixed signals from Washington. While US President Donald Trump suggested that a framework understanding had been largely discussed, he also warned that a final agreement was not urgent. US Secretary of State Marco Rubio separately said Washington would pursue either a deal or take another approach.
Analysts said these shifting expectations have kept investors cautious. Lower oil prices, which recently touched two-week lows, have also played a role in shaping inflation forecasts. Since higher oil costs can push inflation up and keep interest rates elevated, any easing in crude prices tends to support non-yielding assets like gold.
The US dollar hovering near a one-week low further added strength to bullion, making gold cheaper for buyers using other currencies.
Other precious metals also gained. Silver rose 3.1 percent to $77.79 per ounce, platinum increased 2.3 percent to $1,966.59, while palladium climbed 2.7 percent to $1,384.70.
