Gold prices surge Rs4,600 on rising geopolitical tensions

KARACHI: Gold prices in the local market soared by Rs4,600 per tola on Friday, reflecting a sharp rally in international markets as investors sought refuge in the precious metal amid escalating geopolitical tensions in the Middle East and Eastern Europe.

According to the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of gold rose to Rs361,500 per tola, while the rate for 10 grams of gold increased by Rs4,023, reaching Rs310,007.In the global market, gold prices surged by $46, closing at $3,421 per ounce, one of the highest levels recorded in recent weeks.

“Investors are turning to gold as a traditional safe haven in times of crisis,” said a goldsmith. “The rise in global political risk, particularly the potential for sanctions, oil supply disruptions and currency instability, is pushing demand for gold both internationally and locally.”

He warned that any significant currency movement, combined with continued geopolitical uncertainty, could push gold prices to new record highs in the coming weeks.Meanwhile, silver prices also posted gains. The APSGJA reported an increase of Rs35 per tola, bringing the price to Rs3,780, while the rate for 10 grams of silver climbed by Rs30 to Rs3,240.

With gold continuing its upward trajectory, jewellers anticipate more volatility ahead. “It is clear that the global uncertainty is far from over,” said one trader. “Investors are watching closely, and gold remains the asset of choice for security.”