Gold prices in Pakistan recorded a massive increase on the back of improved global sentiment following a temporary ceasefire between the United States and Iran. According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of gold per tola surged by Rs15,700, reaching Rs504,162 in the local market.
Similarly, the price of 10 grams of gold rose by Rs13,460, settling at Rs432,237, reflecting a strong bullish trend in the domestic bullion market.
Global Market Rally Supports Local Prices
The sharp increase in local gold rates was largely driven by gains in the international market. Globally, gold prices climbed to a near three-week high, with spot gold trading at approximately $4,756 per ounce.
The rise was supported by a weaker US dollar and declining oil prices, which made gold more attractive as a safe-haven investment. Investors shifted towards gold amid changing macroeconomic conditions and easing geopolitical risks.
US-Iran Ceasefire Eases Market Tensions
A key factor behind the surge in gold prices was the announcement of a two-week ceasefire between the United States and Iran. The truce helped calm global markets by reducing fears of a prolonged conflict in the Middle East.
Lower geopolitical tensions contributed to a drop in oil prices, which in turn reduced inflationary pressure. This environment encouraged investors to move towards gold, boosting its demand in international markets and impacting local prices in Pakistan.
Read Also: Oil Falls and Stocks Rise After Trump Ceasefire Deal
Silver Prices Also Move Upward
Alongside gold, silver prices also witnessed an upward trend in the domestic market. The price of silver per tola increased by Rs440, reaching Rs8,184.
This rise indicates a broader momentum across the precious metals market, as both gold and silver benefited from improved investor sentiment and global price movements.
Short-Term Outlook for the Gold Market
Market analysts believe that gold prices may remain elevated in the short term due to continued uncertainty in global economic conditions and expectations of potential interest rate adjustments.
However, experts also caution that prices could remain volatile, as geopolitical developments and fluctuations in the US dollar will continue to influence the direction of the bullion market.
