KARACHI: Gold prices in Pakistan soared on Wednesday as global markets reacted to a Pakistan-brokered ceasefire between the United States and Iran, coupled with the conditional reopening of the Strait of Hormuz.
According to the All Pakistan Sarafa Gems and Jewellers Association, the price of gold rose by Rs.15,700 per tola, reaching Rs.504,162, while 10 grams of 24-karat gold climbed by Rs.13,460 to Rs.432,237. International gold prices also advanced, settling at $4,814 per ounce, up $157. Silver followed suit, with domestic rates increasing by Rs.440 per tola to Rs.8,184, while international silver prices touched $77 per ounce, a gain of $4.40.
The surge comes in the wake of a two-week truce announced late Tuesday, under which Iran agreed to reopen the Strait of Hormuz — a vital artery for global oil shipments — in exchange for a temporary halt in hostilities. The agreement was reached just minutes before a US deadline, easing fears of a prolonged conflict that could have severely disrupted global energy supplies.
Diplomatic sources confirmed that Pakistan played a central role in mediating the deal, proposing a two-phased plan aimed at de-escalating tensions and restoring trade flows through Hormuz. The initiative has drawn cautious praise from international observers, though analysts warn that the ceasefire remains fragile.
Market experts noted that while the reopening of Hormuz has stabilised oil supply concerns and brought down oil prices as investors continue to flock to gold as a safe-haven asset amid uncertainty over the durability of the truce. “The ceasefire has provided temporary relief, but the geopolitical risk premium remains high,” said one Karachi-based bullion trader.
The association clarified that local gold rates are calculated on the basis of interbank exchange values, meaning fluctuations in the rupee against the dollar amplify domestic price movements.
With the ceasefire set to expire in two weeks, traders and policymakers alike are bracing for renewed volatility should talks falter.
