Gold prices fall sharply; oil surges amid US-Iran tensions

Global markets saw sharp movement on Friday, with gold prices declining significantly while oil prices surged amid rising geopolitical tensions.

Gold prices recorded a notable decline in both international and local markets. According to the All Pakistan Sarafa Association, the price of gold per tola in Pakistan fell by Rs 5,200, bringing it down to Rs 493,762. Similarly, the price of 10 grams of gold dropped by Rs 4,458 to Rs 423,321.

In the global market, gold prices also slipped, with the rate per ounce decreasing by $52 to settle at $4,714. The downward trend reflects shifting investor sentiment as markets react to broader economic and geopolitical developments.

In contrast, global oil prices moved sharply upward, driven by escalating tensions between the United States and Iran. Reports of commercial ship seizures and concerns over disruptions to energy supply routes have added to market uncertainty.

Brent crude prices rose by around 5 per cent, reaching $106.80 per barrel, crossing the $100 mark for the first time in two weeks. The surge comes as fears grow over the security of key shipping lanes, particularly the Strait of Hormuz.

US President Donald Trump also stated that vessels passing through the strategic waterway would require approval from the US Navy, further intensifying concerns over global oil supply.