Gold prices in Pakistan opened the new business week higher, continuing a rally that has been driven in part by global investor caution amid geopolitical uncertainty and expectations that persistent inflation could delay interest rate cuts in the United States.

According to reports, gold prices in Pakistan opened at Rs429,236 per tola after an increase of Rs4,700 in the previous session, while the price of 10 grams of 24-karat gold opened at Rs368,000 following a surge of Rs4,029. Internationally, gold opened at $4,068 per ounce after increasing by $47 in the previous session, as investors adopted a cautious approach amid growing geopolitical uncertainty. 

For Pakistani households, many of whom view gold as both a cultural asset and a hedge against inflation, rising prices carry mixed implications. Buyers planning purchases for weddings or other occasions face higher costs, while those holding gold as savings benefit from the appreciation. Jewellers in Karachi and other major cities have periodically reported softer walk-in demand during periods of rapid price increases, as buyers wait for signs of stabilization before making large purchases.

The rally also reflects broader global trends, with gold traditionally serving as a safe haven asset during periods of geopolitical tension, including the ongoing volatility linked to conflicts in the Middle East. Local rates in Pakistan tend to track international movements closely, meaning further global uncertainty could push domestic prices higher still in the weeks ahead.

— Compiled by the Weekly PK Staff Desk