Gold price increases by Rs4,643 per tola in Pakistan

Karachi (Web Desk): Gold prices witnessed a sharp increase in Pakistan's local bullion market, reversing the recent downward trend and pushing rates significantly higher.

According to the All Pakistan Sarafa Gems and Jewellers Association, the price of one tola of gold climbed by Rs4,643, reaching Rs442,636.

Meanwhile, the price of 10 grams of gold rose by Rs4,179 to settle at Rs378,345.

Economic analysts said the latest rally reflects growing investor interest in gold as a safe-haven asset.

They noted that fluctuations in the value of the Pakistani rupee, coupled with developments in international markets, have contributed to the rise in prices.

In the global market, gold also posted gains following reports of progress in talks between Iran and the United States.

Spot gold advanced 0.7 percent to $4,189.69 per ounce after previously falling to its lowest level since June 11 on Friday. However, US gold futures declined 0.9 percent to $4,207.70 per ounce.

The first round of negotiations between senior US and Iranian officials concluded in Switzerland, with Iran's Foreign Ministry describing the discussions as positive. In a joint statement, mediating countries Qatar and Pakistan said both sides had agreed on a roadmap aimed at reaching a final agreement within 60 days.

Market analyst Edward Meir said geopolitical developments continue to shape investor sentiment, adding that the rapidly evolving situation is keeping traders cautious.

At the same time, expectations of tighter monetary policy from the US Federal Reserve have continued to weigh on the gold market.

After Federal Reserve Chairman Kevin Warsh emphasized concerns about inflation, investors increased their expectations for a potential interest rate hike.

Data showed that nine of the Fed's 19 policymakers support raising interest rates this year, while the probability of a rate increase in December has climbed to 89 percent.

Higher interest rates generally reduce the appeal of gold because the precious metal does not provide a yield or interest income.

Among other precious metals, silver gained 2 percent to $66.18 per ounce, platinum rose 0.4 percent to $1,670.74 per ounce, and palladium increased 1 percent to $1,270.41 per ounce.