KARACHI: Gold prices in Pakistan surged on Monday, with the price of one tola rising by Rs4,000, following an increase in international bullion markets.
According to the All Pakistan Gems and Jewellers Association (APGJA), the price of 24-karat gold per tola climbed to Rs431,736, up from the previous trading session.
The association said the price of 10 grams of 24-karat gold increased by Rs3,430 to Rs370,143.
In the international market, gold prices rose by $40 per ounce, reaching $4,093 per ounce, contributing to the upward trend in domestic prices.
Gold has traditionally been regarded as a safe-haven investment, with its value typically rising during periods of inflation, political uncertainty and economic instability.
For centuries, gold has served as both a store of wealth and a form of currency. Investors often turn to the precious metal when confidence in other asset classes weakens, making it a preferred hedge against market volatility.
Last year, Pakistan revised its mechanism for determining domestic gold prices. Under the new formula, the local gold price is set at $20 per ounce above the prevailing international market rate, reflecting adjustments made by the country’s bullion pricing system.
More read, Global gold declines push Pakistan bullion prices lower
Earlier, Gold and silver prices continued their downward trend in both international and local bullion markets as escalating tensions between the United States and Iran, concerns over the closure of the Strait of Hormuz, expectations of crude oil reaching $100 per barrel, and prospects of higher interest rates ahead of next week’s US Federal Reserve meeting dampened precious metals demand.
In the international bullion market, the price of gold fell by $46 per ounce to $4,050 per ounce.
Reflecting the global decline, Pakistan’s local bullion market also recorded sharp losses. The price of 24-karat gold per tola dropped by Rs4,600 to Rs427,436, while the price of 10 grams of gold decreased by Rs3,944 to Rs366,457.
Silver prices also declined in the international market, with the price per ounce falling by 61 cents to $58.30.
