Gold climbs Rs. 4,000 as global prices rebound
Gold prices in Pakistan rose firmly on Monday, moving in line with international markets, after a pause in hostilities between the United States and Iran.
The All-Pakistan Gems and Jewellers Sarafa Association reported that the price of 24-carat gold increased by Rs4,000 to settle at Rs431,736 per tola. Ten-gram gold was sold at Rs370,144, reflecting a gain of Rs3,430. On Saturday, the per-tola rate had closed at Rs427,736 after a modest rise of Rs300. In the global market, spot gold advanced 0.9% to $4,090.79 per ounce by 12:35 pm EDT (1635 GMT). US gold futures for August delivery climbed 0.5% to $4,093, according to Reuters. The US dollar index eased 0.1%, rendering greenback-priced bullion more accessible to international buyers and providing additional support to prices.
The upward movement in gold coincided with a sharp decline in crude oil. Brent crude fell more than 8% to a one-week low following the weekend pause in fighting between the United States and Iran. Lower oil prices helped ease near-term inflation concerns ahead of the US Federal Reserve's rate decision later this week.
Silver also recorded a modest increase in the local market, rising by Rs100 to Rs6,397 per tola, according to the association.
Bullion traders attributed the day's gains primarily to the international price recovery rather than any notable shift in domestic buying. The combination of a softer dollar, reduced geopolitical risk in oil markets, and anticipation surrounding the Federal Reserve meeting created a favourable backdrop for precious metals.
Market participants continue to watch developments closely. Any further signals on US monetary policy or changes in the geopolitical situation could influence gold and silver rates in the coming sessions. Local prices remain closely aligned with global trends, leaving room for additional movement depending on overnight international cues. Meanwhile, the Pakistani rupee closed at 277.86 after rising Rs0.01. It had settled at 277.87 on Friday.