KARACHI: Gold prices in Pakistan witnessed a significant single-day surge on Wednesday, with the per-tola rate climbing by Rs15,700 to reach Rs504,162, as international bullion markets rallied on a temporary breakthrough in the geopolitical standoff between the United States and Iran.
The All-Pakistan Gems and Jewellers Sarafa Association confirmed that the price of 10 grams of gold also rose by Rs13,460, settling at Rs432,237. Silver followed the upward trend, gaining Rs440 to trade at Rs8,184 per tola. The gains came a day after gold had declined, with the per-tola rate having closed at Rs488,462 on Tuesday.
On the international front, spot gold climbed 1.2 percent to $4,756.37 per ounce during mid-session trading, having earlier touched a gain of over 3 percent its strongest level since March 19. June delivery futures on US exchanges advanced 2.1 percent to $4,782.70 per ounce.
The primary catalyst behind the rally was a two-week ceasefire agreement between Washington and Tehran, reportedly facilitated through Pakistan’s diplomatic engagement. The truce prompted a retreat in both oil prices and the US dollar, conditions that traditionally bolster demand for gold as a store of value and safe-haven asset.
The Pakistani rupee registered a marginal gain of Rs0.01, settling at 279.05 against the US dollar, as the greenback touched a one-month low in global currency markets. Analysts anticipate continued volatility in gold prices, with movements closely tied to developments in the Middle East and signals from the Federal Reserve in the near term.
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