Islamabad: Gold prices increase by more than 1% on Thursday, as renewed geopolitical tensions and investor caution ahead of key U.S. inflation data boosted safe-haven demand. Subsequently Gold prices increase in Pakistan too.
In Pakistan, the price of 24-carat gold rose by Rs 2,800 per tola, reaching Rs 436,600, according to the All Pakistan Gems and Jewellers Association (APGJA). The rate for 10 grams increased by Rs 2,400 to Rs 374,300, tracking the upward global trend.
Analysts said the latest surge reflects both opportunistic buying and mounting concerns over escalating geopolitical risks following new U.S. sanctions on Russia and potential trade restrictions on China.
Gold has already gained nearly 57% so far this year, driven by persistent global uncertainty, expectations of interest rate cuts and strong central bank buying.
On Wednesday, U.S. President Donald Trump imposed sanctions on Russian oil companies Rosneft and Lukoil and announced plans to restrict software exports to China in response to Beijing’s latest curbs on rare-earth minerals.
Lower interest rates typically favor gold, a non-yielding asset, by reducing the opportunity cost of holding it.
Meanwhile, J.P. Morgan forecast gold prices could average around $5,055 per ounce by the fourth quarter of 2026, assuming sustained central bank purchases and steady investor demand of about 566 tonnes per quarter.
Among other precious metals, spot silver gained 1.5% to $49.25 per ounce, platinum rose 0.1% to $1,623.99 and palladium advanced 0.8% to $1,470.71.
