ISLAMABAD: Gold and silver prices witnessed a further increase on Friday, both in international and domestic markets, amid declining crude oil prices and fluctuations in the US dollar.
According to market reports, the primary reasons for the slight increase in gold prices are the drop in global oil prices and the limited volatility in the US dollar index.
On the other hand, investors’ focus remains on the situation in the Middle East and the future monetary policy direction of central banks around the world. In the global market, the price of spot gold rose by 0.2 percent to reach $4,346.65 per ounce, while US Gold Futures recorded a price of $4,385.70 per ounce after a 0.3 percent decline.
Analysts say gold is getting support as a safe-haven asset due to geopolitical tensions. The recent fall in crude oil prices by nearly 1 percent and the US dollar coming down from its recent high have also supported bullion prices.
Silver also followed the upward trend in the international market, trading near its multi-month high. The increase in international prices has directly impacted the local market. In Pakistan, the price of 24-carat gold has seen a sharp increase in recent days. According to the All Pakistan Sarafa Gems and Jewellers Association, the local gold market is mirroring the international trend.
Traders in Peshawar, Karachi and Lahore said that buying has slowed down due to record-high prices, but investors are still considering gold as a safe investment amid inflation and rupee depreciation. Experts believe that if the Middle East crisis continues and the US Federal Reserve hints at a rate cut in its next policy meeting, gold prices could see another rally in the coming week.
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