US strikes in Venezuela spur safe-haven buying

Gold, silver surge on global turmoil; local yellow metal's price jumps Rs9,200/tola

KARACHI:

Gold prices in Pakistan experienced a significant rebound on Monday, influenced by strong gains in the international bullion market, driven by heightened geopolitical tensions following a dramatic event where the US launched airstrikes on Venezuela and abducted President Nicolas Maduro. As a result, there was increased demand for safe-haven assets like gold, which positively impacted investor sentiment in the market.

According to rates released by the All-Pakistan Gems and Jewellers Sarafa Association, the price of gold per tola surged by Rs9,200 to settle at Rs464,762. Similarly, the price of 10 grams of gold rose by Rs7,888 to Rs398,458. The rebound followed a decline on Saturday, when gold per tola had slipped by Rs4,700 to close at Rs455,562.

Silver prices also extended their rally, with the per-tola rate increasing by Rs267 to Rs8,023, marking a new all-time high in the domestic market.

Internationally, spot gold climbed 2.9% to $4,453.22 an ounce by 10:10 am ET (1510 GMT), after touching its highest level since December 29. Gold had earlier scaled a record peak of $4,549.71 per ounce on December 26, according to Reuters.

Reports of US intervention linked to Venezuela's oil sector, coupled with President Donald Trump's warning of further strikes if Caracas resists US oil industry plans, added to investor caution. At the same time, expectations of potential US Federal Reserve rate cuts and anticipation ahead of key US non-farm payroll data due later this week continued to influence market positioning.

Commenting on the trend, Adnan Agar, Director at Interactive Commodities, said gold prices remained firmly on the upside. "The market low was around $4,370, while the high was near $4,455. There was strong support for gold at approximately $4,250, which it did not break, indicating that the market is trending upwards," he noted.

Agar added that other precious metals also moved higher during the session. Both silver and platinum increased during Monday's trading. "The upcoming US non-farm payroll data on Friday will be critical. If the data supports gold, prices could rise further; otherwise, there may be some correction," Agar said.

Looking ahead, Agar expects gold prices to stabilise in the near term. With the new year underway, over the next 15 to 20 days, or possibly up to a month or a month and a half, gold may trade within a range of $4,100 to $4,500. "However, given rapidly changing geopolitical developments and incoming US data, the market remains highly unpredictable and will react accordingly," he cautioned. Meanwhile, the Pakistani rupee edged slightly higher against the US dollar on Monday, closing at 280.10 in the inter-bank market, up by Rs0.01. The local currency started 2026 on a positive note, gaining Rs0.06 last week, according to the State Bank of Pakistan. Globally, the dollar strengthened as markets focused on the upcoming US economic data guiding Federal Reserve policy.