Gold price in Pakistan jumps Rs7,900 per tola amid global rally

Gold prices increased sharply in Pakistan on Wednesday, following a rise in international bullion rates. Market participants were also tracking movements in the US dollar, oil prices and global economic developments.

According to rates issued by the All Pakistan Sarafa Gems and Jewellers Association, the price of 24-karat gold climbed by Rs7,900 per tola.

The price rose from Rs449,336 in the previous session to Rs457,236 per tola. The latest increase adds to the recent movement in domestic gold rates, which often respond to changes in international prices and currency conditions.

Gold price rises in local market

The price of 24-karat gold also increased when calculated by weight in the domestic market.

The rate for 10 grams rose by Rs6,773, reaching Rs392,006 from the earlier price of Rs385,233.

The increase came as international gold prices recorded a strong rise. The association reported that global gold climbed by $79 per ounce, moving from $4,268 to $4,347.

Local gold prices are influenced by international bullion rates, exchange-rate movements and domestic market conditions. As a result, changes in global prices can quickly affect the rates announced by local jewellers.

Silver prices also move higher

Silver prices followed the upward trend in the domestic market.

According to the association, silver increased to Rs6,942 per tola from Rs6,802. The rise reflects broader movement across precious metals as investors assess economic and geopolitical developments.

Gold and silver are closely watched by investors during periods of uncertainty. Their prices can react to changes in interest-rate expectations, currency movements and demand for safe-haven assets.

Weaker dollar supports gold prices

In international markets, gold received support from a softer US dollar. A weaker dollar generally makes gold cheaper for buyers using other currencies, which can help increase demand.

Oil prices also eased after recording gains during the previous two sessions. Investors continued to monitor developments in the Middle East and assess the latest US inflation data for clues about future monetary policy.

“Gold firms up today on easing dollar strength, a cooldown in oil prices and a pullback in US bond yields,” said Nikos Tzabouras, a senior market analyst at Jefferies-owned Tradu.com.

The movement in US bond yields is another factor affecting gold. When yields fall, gold can become more attractive because the opportunity cost of holding a non-yielding asset is reduced.

Also Read:Pakistan raises petrol and diesel prices again

Federal Reserve decision remains in focus

Investors are now awaiting the US Federal Reserve’s upcoming interest-rate decision. The announcement will be followed by a press conference from Fed Chair Kevin Warsh.

Market expectations for interest rates remain a major influence on gold prices. Traders are pricing in a 93% chance of at least a 25-basis-point US rate hike, according to the CME FedWatch Tool.

Higher interest rates generally make interest-bearing investments more attractive compared with gold, which does not pay interest. This can put pressure on bullion demand.

However, expectations can change quickly when economic data, inflation figures or central bank statements provide new information.