KARACHI – Gold prices recorded a significant increase in domestic market on Wednesday as US-Iran peace deal hopes sent the oil prices and US dollar lower.
Data shared by All Pakistan Gems and Jewellers Association showed per tola price surged by Rs11,100, taking the new rate to Rs488,962.
Similarly, the price of 10-gram moved up by Rs9,517 as the new rate settled at Rs419,206 in local market.
In international bullion market, the precious commodity saw an increase of $111, taking the rate to $4,666 per ounce.
Silver prices also witnessed an increase of Rs223 as per tola rate closed at Rs8,072 in Pakistan.
Meanwhile, Pakistan Stock Exchange (PSX) witnessed significant gains on Wednesday amid hopes for a potential peace deal between the US and Iran.
During intraday trading, the KSE-100 index benchmark surged by 2,890.17 points or 1.75 percent to reach 167,632.64 points compared to previous close of 164,742.
Experts said US President Donald Trump’s decision of halting Operation Freedom at the Strait of Hormuz and signals of a peace deal with Iran has boosted the investor confidence that has sparked buying rally.
The oil prices declined for a second consecutive day on Wednesday as markets anticipated that previously disrupted supply from the Middle East could soon resume.
Brent crude for July delivery dropped $1.89, or 1.7%, to $107.98 per barrel by 0340 GMT, after a 4% fall in the prior session.
Meanwhile, U.S. West Texas Intermediate for June slipped $1.83, or 1.8%, to $100.44, following a 3.9% decline the day before.
Trump said on Tuesday he would briefly halted an operation to help escort ships through the Strait of Hormuz, saying “great progress” toward a comprehensive agreement with Iran
