Gold prices edged higher at the international market and were on track for their strongest weekly performance since January, supported by easing inflation concerns and optimism that tensions in the Middle East could continue to subside.
Spot gold rose 0.4% to $4,254.11 an ounce after touching a seven-week high in the previous session.
The precious metal has gained more than 5% so far this week. U.S. gold futures also advanced 0.3% to $4,312 an ounce.
Analysts said expectations of a more stable geopolitical environment in the Middle East have helped reduce inflation concerns, creating conditions that have supported bullion prices above the $4,000 mark.
While gold is traditionally viewed as a safe-haven asset during periods of uncertainty, investors have also responded to changing expectations for inflation and monetary policy, which have bolstered demand for the metal.
The rally comes after gold extended gains throughout the week, with market participants closely monitoring developments in the Middle East and their potential implications for global inflation and interest rates.
Other precious metals also traded higher. Silver gained 0.8% to $61.96 an ounce, while platinum added 0.4% to $1,735.71. Palladium, however, slipped 0.3% to $1,367.06 an ounce.
The strength in international prices has also lifted expectations of another increase in Pakistan’s domestic gold market.
On Thursday, the price of gold surged to a record Rs449,236 per tola after rising by Rs11,300 in a single session.
Over the past two trading days, local gold prices have climbed by a cumulative Rs21,300 per tola, and dealers expect further gains if the upward trend in global markets persists.
