Gold price rises in Pakistan as global rates climb

ISLAMABAD: Gold prices rose in Pakistan on Monday, with the price of one tola increasing by Rs2,000 as international bullion rates also moved higher.

The All Pakistan Sarafa Gems and Jewellers’ Association said that the price of one tola of gold increased to Rs461,936.

The price of 10 grams of gold also rose by Rs1,715, reaching Rs396,035.

The increase in domestic prices came as gold prices in the international market climbed by $20 to $4,395 per ounce.

Silver prices also recorded an increase in the local market. The price of one tola of silver rose by Rs80 to Rs7,029.

Gold prices had declined by Rs500 per tola on the last trading day of the previous week, highlighting continued volatility in both domestic and international bullion markets.

Gold prices remain sensitive to a range of global economic and financial factors, including uncertainty over the economic outlook, geopolitical tensions, monetary policy decisions by major central banks and fluctuations in the value of the US dollar.

Changes in international bullion prices are reflected in Pakistan’s local market, with exchange-rate movements also influencing domestic prices.

Meanwhile, persistently high gold prices have continued to weigh on jewellery demand.

Traders in the local bullion market say consumers have become increasingly cautious, with many limiting purchases to essential needs as the cost of gold remains elevated.

Jewellers say the high prices have led to a noticeable decline in buying and selling activity, particularly among consumers purchasing gold for jewellery rather than investment purposes.

Market participants will continue to monitor international gold prices, movements in the US dollar and global economic developments for indications of the direction of bullion prices in the coming sessions.