Gold jumps by Rs13,300 on war concerns

US-Israel attacks on Iran take safe-haven asset to Rs563,862/tola; rupee steady

KARACHI:

Gold prices in Pakistan surged sharply on Monday, tracking gains in the international market where bullion rallied on escalating geopolitical tensions after US and Israeli strikes against Iran intensified fears of a prolonged Middle East conflict.

In the local market, the price of 24-karat gold rose by Rs13,300 per tola to reach Rs563,862, according to rates issued by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA). Similarly, the price of 10-gram gold increased by Rs11,402 to Rs483,420.

Silver prices also moved higher, with per-tola rate rising by Rs188 to Rs10,050 in the domestic market. In global trading, spot gold advanced about 2% to $5,384.41 an ounce by 1406 GMT after hitting an intra-day high of $5,418.50.

Bullion has remained on a strong upward trajectory this year, gaining roughly 25% so far in 2026 amid persistent geopolitical risks and safe-haven flows. Prices had touched a record peak of $5,594.82 per ounce on January 29, according to Reuters' data.

Market participants said the immediate trigger for Monday's surge was intensifying conflict risks in the Middle East, including reports of the confrontation widening beyond Iran to Lebanon, reinforcing investor demand for safe-haven assets such as gold.

Adnan Agar, Director at Interactive Commodities, said gold had spiked on war concerns but prices partly eased from session highs as markets reassessed the situation.

There was a jump in gold prices, with the market hitting around $5,411 after opening near $5,277, which was Friday's close. Later, it was trading near $5,323, so it has come down somewhat, he said.

Agar noted that oil prices had also retreated slightly from early highs, suggesting investors presently viewed the conflict as contained despite fears of wider escalation. "Investors are keeping the war in mind but treating it as under control for now, hoping it does not spread further. That is why prices moved up and then corrected somewhat," he explained.

However, Agar cautioned that risks remained tilted to the upside for bullion. Meanwhile, the Pakistani rupee posted a marginal gain against the US dollar, closing at 279.46 in the inter-bank market (up Rs0.01).