Pakistan Gold Price Soars Rs6,900 in One Day Amid Middle East Uncertainty

The price of gold in Pakistan surged significantly on Friday, rising by Rs6,900 per tola to reach Rs460,336. According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), this marks a sharp increase in local market rates amid uncertainty over the Middle East.

The price of 10-gram gold also increased, reaching Rs394,663 after rising by Rs5,914.

This latest rise follows Thursday's decline of Rs3,800 per tola, which had settled at Rs453,436. In contrast, international markets saw a gain of $69 in gold prices, with spot gold rising 0.9 percent to $4,378.19 per ounce and US gold futures increasing by 0.4 percent to $4,418.20.

Analysts attribute the continued rise in gold prices to falling oil prices, which have reduced inflation concerns and led investors to seek safe-haven assets. Han Tan, chief market analyst at Bybit, stated that gold has taken the Federal Reserve's hawkish signals in stride, instead benefiting from declining oil prices.

Goldman Sachs believes that tighter monetary policy may affect the pace of gold's near-term gains but not its long-term price. Additionally, the Bank of Japan raised interest rates to a 31-year high and signaled further tightening as inflation remains a concern.