KARACHI: Gold prices surged by Rs13,300 per tola in the local market on Monday, tracking strong gains in the international bullion market as escalating geopolitical tensions between Iran and the United States fuelled fresh safe-haven buying.
According to the All Pakistan Sarafa Gems and Jewellers Association, the price of 24-carat gold climbed to Rs563,862 per tola. The rate for 10 grams also rose sharply by Rs11,402 to settle at Rs483,420.
In the international market, gold prices advanced by $133 per ounce to reach $5,411, reflecting heightened investor anxiety amid reports of rising hostilities and fears of a broader conflict in the Middle East. Analysts said uncertainty surrounding the Iran-US situation pushed global investors towards traditional safe-haven assets, including gold, driving prices higher.
Bullion dealers noted that domestic gold prices closely follow international trends and are typically adjusted with a premium of around $20 per ounce. This adjustment accounts for exchange rate movements, import costs and prevailing market conditions in Pakistan, which can magnify global price swings.
Silver prices also posted moderate gains. The metal increased by Rs188 to Rs10,050 per tola, while the price of 10-gram silver rose by Rs161 to Rs8,616. Market participants said bullion is likely to remain volatile in the near term, with prices highly sensitive to geopolitical developments, currency fluctuations and investor sentiment. Traders added that while jewellery demand remains subdued due to elevated prices, investment demand continues to support the market during periods of global uncertainty.
