KARACHI: Gold and silver prices rose in Pakistan on Friday, following an upward trend in international markets as investors closely monitored developments in the Middle East.
According to the All Pakistan Sarafa Gems and Jewellers Association, the price of gold increased by Rs6,900 per tola to Rs460,336, while the price of 10 grams rose by Rs5,914 to Rs394,663.
Silver prices also increased, with the price of one tola rising by Rs300 to Rs7,169.
In the international market, spot gold prices increased by $69 to $4,378 per ounce.
Investors continued to monitor geopolitical developments in the Middle East and the latest US inflation data for clues about the Federal Reserve’s interest-rate policy.
Oil prices fell for a third consecutive session as easing concerns over disruptions to Saudi supplies outweighed worries about the widening conflict in the Middle East.
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“The precious metal appears to have taken the Fed’s hawkish signals in stride, instead finding immediate relief from falling oil prices amid hopes that the Fed’s hiking cycle will prove shallow,” said Han Tan, chief market analyst at Bybit.
Gold is traditionally considered a hedge against inflation, but higher interest rates can reduce demand for the precious metal by making yield-bearing assets more attractive.
The US Federal Reserve raised interest rates on Wednesday and signalled further hikes in the coming months.
Goldman Sachs said in a note that it expected the impact of tighter monetary policy to be reflected mainly in slower near-term appreciation rather than a lower long-term gold price.
