Gold prices surged to a nearly three-week high on Wednesday after Donald Trump agreed to pause attacks on Iran for two weeks, easing fears of rising energy costs and inflation.
In the international market, spot gold climbed 2.5% to $4,819.52 per ounce, briefly rising over 3% during the session to its highest level since March 19. US gold futures for June delivery also gained 3.4%, settling at $4,845.30.
Following the global trend, gold and silver prices in Pakistan also increased significantly. The price of gold per tola rose by Rs15,700 to reach Rs504,162, while the rate for 10 grams increased by Rs13,460 to Rs432,237.
Silver prices also moved upward, with per tola rates rising by Rs440 to Rs8,184, and 10 grams increasing by Rs377 to Rs7,016.
The market reaction comes after Washington agreed to a temporary halt in hostilities following a reported ten-point proposal from Tehran aimed at initiating negotiations. Earlier tensions had escalated over threats linked to access through the Strait of Hormuz, a critical global oil route.