Gold prices in Pakistan rose on Monday, with the per tola rate increasing by Rs800 to Rs493,962, according to the All-Pakistan Gems and Jewellers Sarafa Association. International gold prices, however, remained under pressure due to a stronger dollar and investor caution.
ISLAMABAD: Gold prices in Pakistan recorded a slight increase on Monday even as rates in the international bullion market moved lower amid geopolitical uncertainty and investor caution ahead of central bank decisions.
According to the All-Pakistan Gems and Jewellers Sarafa Association, the price of gold in the local market rose by Rs800 per tola to close at Rs493,962. The rate for 10 grams also increased by Rs686, reaching Rs423,492.
The latest rise followed gains in the previous trading session on Saturday, when gold had climbed by Rs2,300 per tola, reflecting continued fluctuations in the domestic market.
International market under pressure
In contrast to the local trend, gold prices in the international market declined on Monday. The drop was linked to a stronger dollar and cautious sentiment among investors as they awaited key monetary policy meetings.
Market participants said the decline in global prices was also tied to the absence of diplomatic progress over the ongoing Iran conflict, a factor that has kept oil prices high and maintained concerns over inflation.
Investors are also monitoring upcoming policy announcements, particularly from the United States, for indications about interest rates and the broader economic outlook.
Adnan Agar, Director at Interactive Commodities, said international gold prices remained under pressure, with intra-day trading moving between $4,666 and $4,729 per ounce.
He said the market was currently trading within a set band, with support around $4,580 and resistance in the $4,800-$4,850 range.
Silver unchanged, rupee posts slight gain
Meanwhile, silver prices in the domestic market remained unchanged at Rs8,049 per tola.
The Pakistani rupee also posted a marginal gain in the inter-bank market, ending at 278.82 against the US dollar after improving by Rs0.03.
The movement in gold prices came at a time when global investors remained focused on geopolitical developments and monetary policy signals, while the local market continued to show volatility despite weakness in international bullion rates.
Domestic bullion prices have recently shown sensitivity to both global trends and local market dynamics, with Monday’s increase coming despite downward pressure in the international market.
The latest figures released by the All-Pakistan Gems and Jewellers Sarafa Association showed that local buyers continued to face elevated prices, while traders tracked developments abroad for further direction.
