Gold prices surged on Tuesday in both local and international markets, recovering strongly after falling in the previous session. According to the All Pakistan Sarafa Gems and Jewellers Association, the price of 24-karat gold rose by Rs24,000 per tola, reaching Rs514,362. The price of 10 grams of 24-karat gold increased by Rs20,576 to Rs440,982.
Meanwhile, 10 grams of 22-karat gold climbed by Rs18,862 to Rs404,248. Silver prices also moved higher. The rate of 24-karat silver per tola increased by Rs741 to Rs9,146, while 10 grams rose by Rs636 to Rs7,841.
The rise followed a strong rebound in global bullion markets. International gold prices jumped by $240 to $4,916 per ounce, while silver gained $7.41 to $86.71 per ounce, the association reported.
In overseas trading, spot gold rose 5.8% to $4,935.56 per ounce by 0818 GMT, recovering from Monday’s low of $4,403.24. US gold futures for April delivery climbed 6.6% to $4,958.50 per ounce.
Analysts said the rebound reflects improved market confidence after weeks of sharp fluctuations. Kyle Rodda, Senior Market Analyst at Capital.com, said prices had returned to more stable levels after recent unusual movements.
Gold recorded a nearly 13% increase in January, its strongest monthly performance since 2009, while silver reached a record high of $121.64 last week before facing heavy losses.
On Tuesday, silver recovered 10% to $87.40 per ounce, following a steep fall of 27% on Friday and a further decline on Monday.
Precious metals had earlier come under pressure after US President Donald Trump nominated Kevin Warsh as the next chairman of the Federal Reserve, strengthening the US dollar. Higher margin requirements announced by the CME Group also added to market volatility.
Meanwhile, the US Bureau of Labour Statistics said the January employment report would be delayed due to the partial federal government shutdown.
In other metals, platinum rose 5.7% to $2,242.55 per ounce, while palladium gained 5.3% to $1,811.39 in global trade.