KARACHI: Gold prices in Pakistan surged on Saturday, mirroring a strong rebound in international markets and pushing the per-tola rate back above the Rs519,000 level, traders said.
According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of gold per tola rose by Rs11,700 to Rs519,462, while the price of 10 grams increased by Rs10,030 to Rs445,354. Silver prices also moved higher, with the per-tola rate climbing Rs444 to Rs8,269.
The increase followed a sharp decline in the previous session, when gold per tola had dropped by Rs21,400 to Rs507,762.
In the international market, gold prices rebounded strongly on Friday and were on track for a weekly gain, supported by bargain hunting, a slightly weaker US dollar and persistent geopolitical concerns linked to US-Iran nuclear talks in Oman.
Spot gold jumped 3.9% to $4,954.92 per ounce by 2:18pm ET (1918 GMT), recovering losses from a volatile Asian session after a similar decline a day earlier. The metal was heading for a weekly gain of around 2%. US gold futures for April delivery settled 1.8% higher at $4,979.80 per ounce.
The US dollar index slipped 0.2%, making dollar-priced gold cheaper for international buyers. Analysts said this encouraged renewed buying interest.
“The gold market is seeing bargain hunting by bullish traders,” said Jim Wyckoff, senior analyst at Kitco Metals, though he cautioned that the rebound lacked strong momentum without a major geopolitical trigger.
Gold is traditionally viewed as a safe-haven asset during periods of economic and political uncertainty.
Silver also staged a sharp recovery, rising 8.6% to $77.33 an ounce after touching a one-and-a-half-month low earlier in the session. Despite the rebound, silver was still headed for a weekly loss of more than 8%.
Wyckoff noted that heavy speculative activity was driving silver’s sharp swings, adding that both gold and silver appeared to be entering a typical commodity correction phase after a prolonged rally.
Meanwhile, CME Group has raised margin requirements for gold and silver futures for the third time in two weeks in an effort to manage risks stemming from heightened market volatility.
Platinum gained 5.4% to $2,093.50 per ounce, while palladium rose 6.2% to $1,717.05 in international trading.