KARACHI: Gold prices rose in Pakistan on Monday, tracking gains in international bullion markets as heightened geopolitical uncertainty boosted demand for the precious metal as a safe-haven asset.
According to rates issued by the All Pakistan Sarafa Gems and Jewellers Association, the price of 24-karat gold increased by Rs1,200 per tola to Rs437,536.
The price of 24-karat gold per 10 grams rose by Rs1,029 to Rs375,116, while 22-karat gold increased by Rs943 to Rs343,868 per 10 grams.
In the international market, gold prices increased by $12 to $4,150 per ounce, the association said.
Silver prices also increased in the local market. The price of silver rose by Rs66 per tola to Rs6,588, while the price of 10 grams increased by Rs57 to Rs5,648.
Internationally, silver prices rose by $0.66 to $61.10 per ounce, according to the association.
Investors continued to monitor geopolitical developments in the Middle East and economic data for clues about the future direction of US Federal Reserve interest rates.
Gold is traditionally considered a hedge against inflation and a safe-haven asset during periods of economic and geopolitical uncertainty. However, higher interest rates can weigh on demand for gold, which does not generate interest, by making yield-bearing assets more attractive.
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“Gold is a safe-haven asset, probably the safe-haven asset, as proven by its performance over time and across a broad range of crises,” Bank of Italy Deputy Governor Sergio Nicoletti Altimari said at the London Bullion Market Association’s annual conference in Sorrento, Italy.
“This role is particularly relevant today in an environment of high geopolitical risk and concerns about economic fragmentation,” he added.
