Web Desk: Gold prices moved higher on Monday as declining crude oil prices eased concerns over inflation, while investors monitored diplomatic developments between the United States and Iran for signals about global market stability.
International markets saw bullion gain after US President Donald Trump delayed further action against Iran and indicated that discussions could take place, reducing fears of an immediate escalation in tensions. At the same time, oil prices dropped sharply as traders assessed the possibility of reduced geopolitical risks.
Spot gold rose 0.4% to $4,055.76 per ounce, while US gold futures increased 0.9% to $4,054 per ounce during early trading.
The precious metal also received support from a weaker US dollar after authorities intervened in currency markets to strengthen the Japanese yen. A softer dollar typically makes gold more affordable for buyers holding other currencies.
However, gold has remained under pressure in recent sessions due to concerns that prolonged geopolitical tensions could fuel inflation and encourage central banks to maintain higher interest rates.
Although investors often consider gold a hedge against inflation, the metal becomes less attractive when interest rates rise because it does not generate regular returns.
Silver prices also advanced, with spot silver gaining 0.9% to $58.13 per ounce.
Other precious metals followed the upward trend, with platinum rising 0.5% to $1,649.35 per ounce and palladium increasing 1.7% to $1,294.92 per ounce.
Market participants continued to watch global economic indicators, including interest rate expectations and geopolitical developments, for further direction in precious metals markets.
Meanwhile, crude oil prices declined more than 5% after expectations grew that diplomatic engagement between Washington and Tehran could prevent further escalation.
The decline in oil prices eased some concerns about a potential surge in energy costs, which had previously raised fears of higher inflation worldwide.
In Pakistan, precious metal prices continue to reflect international market movements, exchange rate fluctuations and local demand conditions.
Latest available market indicators showed 24-karat gold trading around Rs432,500 per tola, while silver was approximately Rs6,774 per tola. Local bullion prices can vary depending on market conditions and city-level rates.
International gold prices have remained near record-high levels, with domestic rates closely tracking global movements and currency changes. Recent local market reports showed gold prices fluctuating around the Rs427,000–Rs432,000 per tola range in late July.
Global crude oil prices came under pressure after the latest geopolitical developments.
Brent crude prices fell sharply as markets reacted to the possibility of negotiations between the United States and Iran, reducing fears of immediate supply disruptions.
Investors are now watching upcoming economic data, central bank policies and diplomatic developments for clues about the next move in gold, silver and energy markets.
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