KARACHI: Gold prices staged a strong comeback in the local market on Tuesday, surging by Rs24,000 per tola after several days of sharp correction, as renewed gains in the international bullion market revived investor sentiment.
According to the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of 24-carat gold rose to Rs514,362 per tola, reversing a significant part of the losses recorded over the past week. The price of 10-gram gold also increased sharply, gaining Rs18,862 to settle at Rs404,248.
Bullion dealers said the rebound followed a recovery in global gold prices, where the metal rose by $240 to trade at $4,916 per ounce. International prices had come under pressure earlier due to profit-taking, easing geopolitical tensions and a stabilising US dollar, but fresh buying interest pushed rates higher once again.
Traders said investors viewed the recent decline as an opportunity to re-enter the market, particularly after gold fell more than Rs80,000 per tola from its peak levels within a few sessions. “The correction was steep and fast, so some bounce-back was expected,” a local bullion dealer said, adding that short-covering and renewed safe-haven demand supported the rally.
Market participants noted that although geopolitical tensions in the Middle East had eased somewhat, uncertainty remains high, keeping gold attractive for investors seeking protection against volatility in currencies and equity markets. Continued fluctuations in the US dollar and expectations around global interest rates have also kept bullion prices highly sensitive to international developments.
Local gold prices in Pakistan are typically adjusted with a premium of around $20 per ounce over international rates to account for exchange rate movements, import costs and domestic market dynamics. Dealers said this premium remained broadly unchanged during the latest session, indicating that the rise was largely driven by global factors rather than local supply constraints.
Silver prices also followed gold’s upward trend. The metal rose by Rs741 to Rs9,146 per tola, while the price of 10-gram silver increased by Rs636 to Rs7,841. Traders said silver, which had seen heavy selling during the recent correction, benefited from renewed speculative interest and bargain buying.
For now, traders expect gold prices to remain range-bound with a positive bias, as buyers and sellers reassess positions after one of the most turbulent periods in the local bullion market in recent years.
