Gold gains momentum as prices touch weekly high

ISLAMABAD: Gold prices in Pakistan rose sharply on Monday in line with gains in the international bullion market, with the rate for one tola increasing by Rs10,800 to Rs455,136, according to the All-Pakistan Gems and Jewellers Sarafa Association.

The association's rates also showed that the price of 10 grams of gold went up by Rs9,720 to Rs389,600. The latest jump came after an increase of Rs4,370 per tola on Saturday, underscoring continued swings in bullion prices.

Global market advances

In international trade, spot gold was up 3.3% at $4,356.79 per ounce by 1435 GMT, after touching its highest level since June 5 during intraday dealings. US gold futures also gained 3.3% to $4,378.70 per ounce.

Market analysts linked the rally to investor positioning after Iran and the United States agreed to halt their military conflict. The development shifted expectations about the future course of US interest rates and renewed demand for precious metals.

The US dollar index slipped 0.2% during the session, which made dollar-priced commodities including gold less expensive for buyers holding other currencies and lent further support to bullion.

Investors await US policy signals

Investors are also watching for remarks later this week from Federal Reserve Chairman Kevin Warsh, whose first press conference in the role is expected to offer guidance on the outlook for US monetary policy.

Other precious metals also moved higher. In Pakistan's domestic market, silver rose by Rs230 per tola to Rs7,509. Globally, palladium gained more than 5%, while traders were also monitoring Singapore's plan to set up an over-the-counter gold clearing system to strengthen regional bullion trading infrastructure.

Separately, the Pakistani rupee posted a marginal gain against the US dollar in the inter-bank market. State Bank data showed the local currency closing at 278.31 against the dollar, compared with 278.32 on Friday.