Gold prices have surged significantly both internationally and locally, driven by recent geopolitical tensions and oil price volatility. In the global bullion market, gold has seen a notable increase, with spot gold prices climbing to $5,205 per ounce from its previous level. However, despite this upward trend, London’s spot gold prices have fallen 6% since February 28th, aligning last at $5,109 per troy ounce.
In the local market, however, gold is proving more resilient, with its price per tola rising by Rs3,700, now reaching Rs543,262. This marks a significant rise compared to the previous level. Interestingly, silver prices have remained relatively stable in contrast to gold’s uptrend, staying at Rs9,354 for each tola and Rs8,019 per 10 grams.
This fluctuation is closely linked to recent oil price movements. On Monday, global oil prices saw a notable increase of about 8%, particularly after Saudi Arabia and other OPEC members announced cuts in supplies due to ongoing conflicts involving Iran. Brent futures surged $7.21 to $99.90 per barrel at the close of trading on that day, with US WTI crude rising by $4.50 to $95.40.
Earlier in the week, Brent briefly touched its highest level since 2022, reaching as high as $119.50 a barrel—a significant increase that contrasts sharply with the current market’s stability after February’s initial surge. By contrast, WTI hit an even higher peak at $119.48.
The most recent spike in gold prices, especially since United States and Israel attacked Iran on February 28th, has seen Brent jump by up to 65% from its July 2008 all-time high of $147.50 a barrel, while WTI saw an even steeper rise at 78%, reaching the highest level since then.
This economic turbulence underscores how interconnected global markets can be, with events unfolding in one region impacting prices and sentiments across different commodities and regions.