Gold prices in Pakistan posted a major increase on Monday, tracking gains in the international market as investors returned to the safe haven metal after easing tensions in the Middle East and a weaker US dollar.
According to the All Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of gold rose by Rs4,000 per tola to settle at Rs431,736.
The price of 10 grams of gold also moved higher, gaining Rs3,430 to reach Rs370,144.
The latest increase follows a modest rise on Saturday, when the price of gold climbed by Rs300 per tola to close at Rs427,736.
In the international market, gold advanced by $40 to $4,093 per ounce, including a premium of $20. The rise in global prices provided fresh support to Pakistan’s local bullion market.
Silver also extended its upward trend. The price climbed by Rs100 per tola to reach Rs6,397, marking a new record high in the local market.
Globally, spot gold gained around 1 percent to trade near $4,093.34 per ounce, while US gold futures for August delivery rose to $4,095.60.
Market analysts said the precious metal benefited after tensions between the United States and Iran showed signs of easing. Lower crude oil prices helped reduce concerns about rising inflation, while a softer US dollar and falling Treasury yields made gold more attractive to investors.
Independent analyst Ross Norman said precious metals started the week on a strong note as the pause in Middle East hostilities pushed oil prices lower, while weakness in the US dollar and bond yields added further support to gold.
The US dollar index slipped 0.2 percent during the session, making dollar priced gold cheaper for overseas buyers and helping lift demand.
The improvement in market sentiment followed comments from Iran indicating it would suspend further attacks as long as the United States also refrained from military action.
According to Reuters, Washington has also paused its bombing campaign after advisers to President Donald Trump raised concerns over the availability of military targets and the strain on US weapons stockpiles.
The focus of global markets is now shifting to the US Federal Reserve’s policy meeting later this week, with investors closely watching for signals on the outlook for interest rates, which could influence the next move in gold prices.
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