Gold prices in Pakistan surged by Rs10,000 per tola on Wednesday as rising geopolitical uncertainty and mixed signals over possible renewed negotiations between the United States and Iran boosted demand for precious metals in global and domestic markets.

In the international bullion market, gold prices jumped by $100 per ounce to $4,155, triggering a sharp increase in local bullion rates.

According to the All-Pakistan Gems and Jewellers Sarafa Association, the price of one tola of gold in the domestic market rose by Rs10,000 to Rs437,936, while the price of 10 grams increased by Rs8,573 to Rs375,459.

Silver prices also recorded gains in both international and domestic markets. In the international market, silver rose by $2.73 per ounce to $61.45.

Following the global trend, the local price of one tola of silver increased by Rs273 to Rs6,624, while the price of 10 grams climbed by Rs235 to Rs5,679.

Read: Gold falls despite global gains

A day earlier, gold prices took a dip in the local market even though the international rates had recovered. The price of gold per tola fell Rs500 to Rs427,936, while the 10-gram rate shed Rs428 to Rs366,886.

The Middle East conflict has resulted in topsy-turvy bullion rates. On Monday, the local market had witnessed a per-tola price climb of Rs1,700 to Rs428,436, compared to a drop followed by a gain over the next two days.