KARACHI: Gold and silver prices rose sharply on Friday after declining for four consecutive days, with the price of gold increasing by Rs4,700 per tola in Pakistan.
In the international bullion market, gold rose by $47 per ounce to reach $4,305.
Following the increase in global prices, the price of gold in Pakistan rose to Rs453,036 per tola, while the price of 10 grams increased by Rs4,029 to Rs388,404.
Silver prices also increased in the international and local markets.
International silver rose to $64.85 per ounce, pushing the price of silver in Pakistan up by Rs126 to Rs6,963 per tola.
The price of 10 grams of silver increased by Rs108 to Rs5,969.
Gold has traditionally been regarded as a safe-haven investment because its value tends to rise during periods of inflation, political uncertainty and economic instability.
For centuries, gold has served as a store of wealth and a form of currency. When investors lose confidence in other asset classes, they often turn to gold as a relatively stable investment to preserve their wealth.
In Pakistan, the mechanism for setting domestic gold prices was revised last year. Under the updated formula, local gold prices are calculated based on the international market rate plus a premium of $20 per ounce, reflecting domestic pricing adjustments.