KARACHI: Gold prices in Pakistan rose sharply on Thursday, with the price of one tola increasing by Rs11,200, according to the All Pakistan Gems and Jewellers Association.
The price of gold climbed to Rs465,236 per tola after the latest increase. The price of 10 grams also rose by Rs9,602 to Rs398,864.
In the international market, gold prices increased by $112 to $4,427 per ounce.
The latest increase came after gold prices had fallen by around Rs33,000 over the previous seven days. Thursday marked the eighth day since that decline began, with prices rebounding by more than Rs11,000.
Investors in global financial markets are closely watching the US nonfarm payrolls report, which is scheduled to be released Friday, September 4. The employment data could influence expectations about U.S. monetary policy and global gold prices.
Gold had gained momentum in July after 25,000 jobs were reportedly lost, but the trend weakened over the past seven days following remarks by Federal Reserve Chair Kevin Warsh, according to the report.
Gold has traditionally been regarded as a safe-haven investment because its value tends to rise during periods of inflation, political uncertainty and economic instability.
For centuries, gold has served as a store of wealth and a form of currency. When investors lose confidence in other asset classes, they often turn to gold as a relatively stable investment to preserve their wealth.
In Pakistan, the mechanism for setting domestic gold prices was revised last year. Under the updated formula, local gold prices are calculated based on the international market rate plus a premium of $20 per ounce, reflecting domestic pricing adjustments.
