Gold surges Rs11,100 as global rally lifts prices

Climbs to Rs488,962/tola on around 3% jump internationally; rupee up

KARACHI:

Gold prices in Pakistan rebounded sharply on Wednesday, tracking gains in the international market, where bullion climbed to its highest level in over a week amid easing geopolitical tensions between the United States and Iran.

In the local market, the price of gold per tola jumped by Rs11,100 to settle at Rs488,962, according to the All-Pakistan Gems and Jewellers Sarafa Association. Similarly, the rate for 10 grams rose by Rs9,517 to Rs419,206.

In the global market, spot gold surged around 3% to $4,693.97 per ounce by 1535 GMT, after touching its highest level since April 27 earlier in the session. US gold futures also climbed 3% to $4,705.60 per ounce, according to Reuters.

Market participants attributed the rally to reports suggesting a potential easing of tensions between Washington and Tehran, which has influenced expectations around inflation and interest rates. Reduced geopolitical risk typically supports gold by improving investor sentiment and shaping monetary policy outlooks.

Meanwhile, silver prices in the domestic market also recorded a notable increase, rising by Rs223 to Rs8,072 per tola, in line with international trends where spot silver gained over 6%.

Adnan Agar, Director at Interactive Commodities, noted that gold prices moved higher as anticipated following signs of de-escalation between the US and Iran. He said the international market touched a high of $4,722 during the day, with bullion later hovering near $4,693 after opening close to the session's low of $4,588.

He added that the market has entered a critical technical range, identifying $4,750 as an immediate resistance level. A sustained close above this threshold could open the path toward $4,900 and potentially the $5,000 mark, subject to continued positive geopolitical developments.

However, Agar cautioned that any renewed tensions could reverse gains, with downside risks potentially dragging prices back to the $4,400-$4,500 range.

Meanwhile, the Pakistani rupee posted a marginal gain against the US dollar in the inter-bank market, appreciating by 0.01%. By the close of trading, the local currency settled at 278.72, strengthening by Rs0.03 compared to the previous session's close at 278.75.