Gold prices in Pakistan rose sharply on Tuesday, mirroring gains in the international market. In the local market, the price of gold per tola increased by Rs3,700, reaching Rs344,200.
According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of 10-gram gold rose by Rs3,173 to Rs295,096.
This comes after a significant decline on Monday, when the price per tola dropped by Rs10,400 to Rs340,500.
The international gold rate also climbed on Tuesday. APGJSA reported the price at $3,258 per ounce (including a $20 premium), reflecting a $37 increase for the day.
Silver prices also followed the upward trend. The price per tola of silver increased by Rs71 to reach Rs2,985.
Globally, gold rebounded on Tuesday due to bargain-hunting, after falling to a more than one-week low in the previous session. The drop was triggered by a temporary easing of trade tensions between the United States and China, which boosted risk appetite and reduced demand for gold as a safe-haven asset.
As of 0458 GMT, spot gold was up 0.5% at $3,250.50 an ounce. U.S. gold futures also rose, gaining 0.9% to $3,255.30.
The recovery follows a 2.7% decline in the previous session. The rebound came after the U.S. and China announced a temporary truce in their trade war, agreeing to reduce tariffs for the next three months. U.S. tariffs on Chinese goods were cut from 145% to 30%, while China reduced its duties on U.S. imports from 125% to 10%. The development led to a surge in global equity markets.
“There is some value-buying happening at current gold price levels, which is helping support the market, despite an improved global economic outlook due to better U.S.-China relations,” said Tim Waterer, Chief Market Analyst at KCM Trade.
He added, “The consolidation move in the dollar has allowed gold prices to make a modest push higher.”
Meanwhile, Federal Reserve Governor Adriana Kugler noted that the pause in tariffs reduces the likelihood of the U.S. central bank needing to cut interest rates in response to a potential economic slowdown.
