KARACHI: Gold prices surged in local and international markets on Wednesday, with the precious metal gaining Rs13,900 per tola in Pakistan following a sharp increase in global bullion rates.
According to the All Pakistan Gems and Jewellers Association, the price of gold per tola jumped by Rs13,900 to Rs426,003 in the local market.
Similarly, the price of 10 grams of gold increased by Rs11,917 to reach Rs356,257.
The increase in domestic gold prices came amid a rally in the international bullion market, where gold gained $139 per ounce to reach $4,035.
Silver prices also recorded an increase in the local market. The price of silver per tola rose by Rs295 to settle at Rs5,663.
Gold is traditionally considered a safe-haven investment, with prices often rising during periods of inflation, political uncertainty and economic instability.
Investors tend to turn to gold when uncertainty surrounds other investment options, as the precious metal has historically been used as a store of value and a form of currency.
Pakistan has also revised its gold price-setting mechanism, under which the domestic rate is fixed at a premium of $20 per ounce over the international market price.
