Gold jumps Rs4,000 per tola as global bullion prices recover

KARACHI: Gold prices in Pakistan posted a sharp gain on Monday, with the rate of 24-carat bullion climbing Rs4,000 per tola to Rs431,736 as international markets moved higher.

The All-Pakistan Gems and Jewellers Sarafa Association said 10-gram gold rose by Rs3,430 to Rs370,144. In the previous session on Saturday, the per-tola rate had settled at Rs427,736 after increasing by Rs300.

In international trade, spot gold was up 0.9% at $4,090.79 per ounce by 12:35 pm EDT, while US gold futures for August delivery gained 0.5% to $4,093.

The rise in bullion came as the US dollar index slipped 0.1%, making dollar-priced gold cheaper for overseas buyers. At the same time, Brent crude fell by more than 8% to a one-week low after a weekend pause in fighting between the United States and Iran, easing immediate inflation worries ahead of the US Federal Reserve's rate decision later this week.

Silver also edged up in the local market, gaining Rs100 to reach Rs6,397 per tola, according to the association.

Bullion traders linked the local advance mainly to the rebound in international prices rather than any major change in domestic buying. They said expectations around US monetary policy and any shift in the geopolitical situation could continue to steer gold and silver prices in the coming sessions.

Meanwhile, the Pakistani rupee closed at 277.86 against the dollar after rising Rs0.01 from Friday's close of 277.87.