Following international market trends, gold prices increase in Pakistan by Rs 15,700
At current prices, the looted gold is worth around $70 million. PHOTO: PIXABAY
Gold prices climbed to a nearly three-week high on Wednesday as markets reassessed near-term risks after US President Donald Trump agreed to suspend bombings and attacks on Iran for two weeks, easing fears of energy-driven inflation.
Spot gold was up 2.5% at $4,819.52 per ounce, as of 0726 GMT. Earlier in the session, bullion rose more than 3% to its highest level since March 19.
Following international market trends, gold and silver prices in Pakistan rose, with the price per tola increasing by Rs15,700 to Rs504,162 and the price per 10 grams climbing by Rs13,460 to Rs432,237.
Silver prices also moved higher, with the per tola rate increasing by Rs440 to Rs8,184, and the price per 10 grams rising by Rs377 to Rs7,016.
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US gold futures for June delivery gained 3.4% to $4,845.30. Trump said Washington had agreed to a two-week pause in attacks and received what he described as a “workable” 10-point proposal from Iran as a basis for negotiations.
His comments followed earlier warnings that Tehran must reopen the Strait of Hormuz or risk US retaliation on its civilian infrastructure.
“People went into this session thinking that escalation was very likely, but the announcement of a two-week truce kind of upended that expectation and that was gold positive,” said Nicholas Frappell, global head of institutional markets at ABC Refinery.
Read More: US, Iran agree to Pakistan-brokered two-week ceasefire with reopening of Strait of Hormuz
Iran’s Supreme Security Council said negotiations with the United States would begin on April 10 in Islamabad after it submitted its proposal via Pakistan, adding that talks did not signal an end to the war.
Meanwhile, rising energy prices could fuel inflation and complicate central banks’ interest rate decisions. While gold is often seen as a hedge against inflation and uncertainty, its appeal tends to weaken in a high-interest-rate environment as it offers no yield.
Markets are now awaiting minutes of the Federal Reserve’s March meeting later in the day. Gold, which began the year on a strong note, has fallen more than 8% since the Iran war erupted on February 28.
“This is a knee-jerk relief rally and it remains to be seen if Iran complies. For gold, the 200 day-moving-average at $4,930 and then $5,000 will be key hurdles. Similarly, $80-$81 is an important level for silver,” independent metals trader Tai Wong said.
Spot silver jumped 5.8% to $77.16 per ounce, platinum gained 4% to $2,036.30 and palladium added 4.6% at $1,537.75.
