KARACHI: Gold prices surged in Pakistan on Wednesday as geopolitical tensions and rising oil prices influenced the local market. The increase comes despite gold prices dipping slightly in the international market.
According to the All-Pakistan Gems and Jewellers Sarafa Association, the price of gold per tola rose by Rs3,700 to Rs543,262. Similarly, 10 grams of gold increased by Rs3,172 to Rs465,759. The rise follows Tuesday’s sharp jump, when gold per tola had climbed Rs6,200 to settle at Rs539,562.
Market analysts say the gold hits in Pakistan are primarily linked to oil price fluctuations. Rising crude costs have a strong impact on domestic commodities, prompting investors to turn to gold as a safe haven.
Internationally, gold prices fell slightly on Wednesday. Spot gold declined 0.3% to $5,177.50 per ounce, while US gold futures for April delivery dropped 1.1% to $5,185.20 per ounce. Analysts attribute the decline to a stronger US dollar, which makes dollar-denominated commodities more expensive for global investors.
Adnan Agar, Director at Interactive Commodities, said the current commodity cycle is heavily influenced by oil. He noted that oil prices remain artificially managed despite a nearly 20% supply disruption caused by the Iran-Israel conflict. Agar added that even if hostilities end, it could take up to six weeks for oil supply chains to stabilize.
Agar also explained that gold recently dipped to around $4,900 per ounce after global stock markets fell. Investors sold precious metals to cover margin calls, impacting the international market.
In Pakistan, the rupee saw a minor gain of Rs0.01 against the US dollar, closing at Rs279.35 in the inter-bank market.
Overall, domestic demand and oil-linked uncertainties continue to push prices upward. Analysts suggest that gold hits in Pakistan may continue in the short term, even as global prices fluctuate. The local market remains closely tied to energy developments and geopolitical risks.
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With investors seeking safe assets, gold remains a key hedge against volatility, and domestic buyers are likely to monitor prices closely. The gold hits in Pakistan highlight the ongoing influence of global events on local commodity markets.
