Gold rises Rs15,700 in Pakistan as global bullion prices climb

ISLAMABAD: Gold prices in Pakistan posted a sharp increase on Wednesday, in line with gains in the international bullion market, where prices moved to a near three-week high amid easing geopolitical tensions and a weaker US dollar.

According to rates issued by the All-Pakistan Gems and Jewellers Sarafa Association, the price of gold per tola in the local market rose by Rs15,700 to Rs504,162. The price of 10 grams of gold also increased by Rs13,460 to Rs432,237.

The jump came a day after domestic gold prices had moved lower. On Tuesday, the per-tola rate had settled at Rs488,462 after declining by Rs3,000.

Silver prices also registered an increase in the local market. Per tola silver rose by Rs440 to reach Rs8,184.

In the international market, spot gold was up 1.2% at $4,756.37 per ounce by 11:43 am EDT, after climbing more than 3% earlier in the session to its highest level since March 19, according to Reuters. US gold futures for June delivery advanced 2.1% to $4,782.70 per ounce.

The rise in bullion prices was linked to a fall in the US dollar and oil prices after a temporary easing in geopolitical tensions. A two-week ceasefire agreement between the United States and Iran, reportedly brokered with Pakistan’s involvement, helped calm markets and reduced immediate inflation concerns.

Market analysts said lower oil prices and reduced tensions generally support gold by putting pressure on the dollar and improving expectations of interest rate cuts.

Adnan Agar, director at Interactive Commodities, said the increase in gold prices had largely been expected, and added that prolonged geopolitical uncertainty could drive prices even higher. He also warned that the ceasefire may not prove durable.

"The situation is highly uncertain. While the ceasefire may continue for a few days or even weeks, there are multiple factors that could derail it," he said, adding that ongoing tensions linked to Israel’s fresh attacks in Lebanon remained a key risk.

Analyst Edward Meir also expressed caution, saying that although the ceasefire had reduced pressure on markets and could create room for possible US Federal Reserve rate cuts, the agreement remained tenuous and could change quickly.

Despite the temporary calm, geopolitical risks remain in focus. Reports indicated continuing hostilities in Lebanon and retaliatory actions by Iran against regional energy infrastructure, keeping markets sensitive to developments.

Analysts said gold prices are likely to remain responsive to events in the Middle East, movements in the US dollar and signals from the Federal Reserve, with volatility expected in the near term.

Meanwhile, the Pakistani rupee edged up by Rs0.01 to 279.05 against the US dollar on Wednesday. Globally, the greenback touched a one-month low after Trump announced a two-week Iran ceasefire.