Gold jumps Rs4,600 on Iran peace hopes

Safe-haven asset surges over 1% globally; rupee edges up to 278.51/$

KARACHI:

Gold prices on Monday registered an increase in Pakistan, mirroring gains in the international market, where the precious metal rose more than 1% amid hopes of a peace deal to end the US-Iran war. The development eased pressure on the dollar and oil prices, reducing fears of higher inflation and interest rates for an extended period.

According to the All-Pakistan Gems and Jewellers Sarafa Association, the price of gold per tola reached Rs477,762 after registering a rise of Rs4,600 during the day. Similarly, the 10-gram gold was sold for Rs409,603, reflecting an increase of Rs3,943.

On the global front, spot gold climbed 1.2% to $4,561.51 an ounce by 1319 GMT, and gold futures for June delivery gained 0.9% to $4,563.60, according to Reuters. US markets were closed for the Memorial Day holiday.

Adnan Agar, Director of Interactive Commodities, commented that the market was standing almost at its high and the reason was that the US-Iran deal was almost closed. "The closing of the deal is a bit positive for gold."

Supporting factors included oil prices falling below $100 a barrel, while the dollar eased as investors moved away from the safe-haven currency. These shifts contributed to the positive momentum in gold trading.

Meanwhile, silver prices in Pakistan also moved upwards, increasing by Rs236 to reach Rs8,270 per tola.

In related international mining news, Ghana's government announced its commitment to renewing the mining lease for Gold Fields' Tarkwa mine. The South African miner will undergo fresh scrutiny of its plans before any renewal is granted. Furthermore, at least 28 people were killed when a landslide struck an illegal gold mining site in Angola's northwestern Bengo province. Local authorities described it as one of the country's deadliest illegal mining accidents.

Meanwhile, the Pakistani rupee recorded a slight appreciation against the US dollar to Rs278.51, up a marginal Rs0.01. It had closed at Rs278.52 on Friday. In the international market, the US dollar weakened 0.2% against the Japanese yen, trading at 158.87 yen. Meanwhile, the euro strengthened 0.3% to $1.1642, while the British pound rose 0.4% to $1.3485.