Pakistan gold prices surge amid global uncertainty and Middle East tensions

Gold prices in Pakistan climbed on Monday, mirroring gains in global markets as geopolitical tensions spurred demand for the safe-haven asset. The All Pakistan Sarafa Gems and Jewellers Association reported that 24-karat gold surged by Rs1,200 per tola to Rs437,536, while the price per 10 grams rose by Rs1,029 to Rs375,116. Similarly, 22-karat gold increased by Rs943 to Rs343,868 per 10 grams. Internationally, gold prices advanced by $12 to $4,150 per ounce.

Silver prices also saw an uptick in the local market, with prices rising by Rs66 per tola to Rs6,588 and by Rs57 to Rs5,648 per 10 grams. On the international front, silver prices increased by $0.66 to $61.10 per ounce.

Investors are closely monitoring geopolitical developments in the Middle East and economic indicators for insights into the US Federal Reserve’s interest rate policies. Gold is traditionally seen as a hedge against inflation and a safe-haven asset during uncertain times, though higher interest rates can reduce its appeal by favoring yield-bearing assets.

Speaking at the London Bullion Market Association’s annual conference in Sorrento, Italy, Bank of Italy Deputy Governor Sergio Nicoletti Altimari emphasized gold’s role as a safe-haven asset, particularly relevant in today’s environment of high geopolitical risk and economic fragmentation.