Gold prices in Pakistan rebounded sharply on Tuesday, a day after witnessing a record slump, with per tola rates surging by Rs16,300 in the domestic market.
The price of gold per tola rose to Rs464,062 following the significant increase recorded in the local market, as per the All Pakistan Sarafa Gems and Jewellers Association.
Similarly, the price of 10 grammes of gold climbed by Rs13,975, reaching Rs397,858.
The increase in rates comes a day after gold prices dropped by a record Rs43,600 per tola, the largest single-day drop on record in Pakistan.
Meanwhile, gold prices steadied in the international market after falling nearly 2% earlier in the session, as investors assessed conflicting signals on a potential de-escalation in the US-Israeli war on Iran and the implications for inflation and interest rates, as per Reuters.
Spot gold was flat at $4,407 per ounce, after falling to $4,097.99 per ounce in the previous session, its lowest since November 24.
The US dollar regained some ground as investors remained doubtful that the war in the Middle East could be quickly resolved, even though US President Donald Trump delayed the bombing of Iranian power stations and energy infrastructure.
Trump on Monday said that the US and Iran had held "very good and productive" conversations about a "complete and total resolution of hostilities in the Middle East". Iran denied it had engaged in any direct negotiations.
The dollar index, which measures the US currency against a basket of peers, rose 0.1% on Tuesday to 99.293 after dipping 0.4% to near a two-week low on Monday.
The index has still strengthened 1.7% this month, on track for its strongest monthly gain since October, as the conflict also fuelled safe-haven demand.
