KARACHI: Gold prices in Pakistan witnessed a sharp increase on Tuesday, May 12, 2025, tracking gains in the international bullion market amid geopolitical tensions and economic uncertainty. According to data released by the All Pakistan Sarafa Gems and Jewellers Association, the price of 24-karat gold per tola rose by Rs 4,100 to settle at Rs 492,462, up from Rs 488,362 in the previous session.
The price of 10 grams of 24-karat gold also climbed by Rs 3,515 to Rs 422,206, while 10 grams of 22-karat gold increased by Rs 3,222 to Rs 387,036. In the international market, gold gained $41 to reach $4,701 per ounce. Silver prices followed suit, with per tola rising by Rs 395 to Rs 8,908 and 10 grams increasing by Rs 339 to Rs 7,637. Internationally, silver climbed $3.95 to $84.24 per ounce.
Market analysts attributed the volatility to shifting global geopolitical developments, particularly tensions between the United States and Iran. The two nations recently exchanged fire, testing a month-long ceasefire. However, Iran later indicated that the situation had normalized, while the U.S. stated it did not seek further escalation. “The comments from the Trump administration that the ceasefire is holding, along with lingering optimism about a potential US-Iran deal, are supporting the gold market for now,” said Kyle Rodda, senior financial market analyst at Capital.com.
Despite short-term fluctuations, analysts maintained a positive long-term outlook for gold, citing its role as a safe-haven asset. Historically, periods of global uncertainty drive investors toward bullion while reducing demand for riskier assets. Gold remains attractive due to its intrinsic value, limited supply, and independence from government policies, making it an effective hedge against inflation and currency depreciation. For more context on geopolitical factors, see Iran–United States relations and Reuters Middle East coverage.
The precious metal continues to serve both as an ornamental commodity and a financial safe haven, with demand strengthening during global instability. As economic uncertainty persists, gold is expected to remain a key asset for investors. For more on gold as an investment, visit BBC Business: Gold investment guide.
Source: ARY News