KARACHI: Rising tensions between Iran and the United States have created uncertainty across the region, pushing gold and silver prices to unprecedented levels worldwide as well as domestically.
In the international bullion market, gold prices climbed for the third consecutive day on Wednesday, jumping by a sharp $43 per ounce to reach a new all-time high of $4,638.
Following this global rally, prices in local bullion markets also soared.
The price of 24-carat gold increased by Rs4,300 per tola, reaching a historic peak of Rs486,162. Similarly, the price of gold per 10 grams rose by Rs3,687 to a new record level of Rs416,805.
Silver prices also witnessed a significant jump.
The price of silver per tola surged by Rs500 to Rs9,575, while the rate per 10 grams increased by Rs429, reaching a new high of Rs8,209.
Gold and silver prices in Pakistan fluctuate on a daily basis and are closely linked to movements in the international bullion market.
Any increase or decrease in global gold and silver rates directly impacts local prices, which are further adjusted according to the interbank exchange rate of the Pakistani rupee against the US dollar.
When the rupee weakens, precious metal prices in Pakistan tend to rise even if global rates remain stable.
Several factors influence gold and silver prices in the country.
Major drivers include global economic uncertainty, geopolitical tensions, inflation trends, interest rate decisions by major central banks, and demand for safe-haven assets.
Locally, changes in import costs, taxes, duties, market speculation, and seasonal demand such as during wedding seasons also play a role.
Together, these global and domestic factors determine the daily pricing of gold and silver in Pakistan.
