Ukraine conflict: Gold price in Pakistan surges by Rs3,400 per tola

• Gold prices in Pakistan surge over 2.67% to Rs130,300 per tola.
• Price in international market rise above $1,900-mark.
• Silver prices in the domestic market rise sharply by Rs30 per tola.

KARACHI: Gold prices in Pakistan Thursday surged over 2.67% to Rs130,300 per tola as Russia's invasion of Ukraine ratcheted up fears of a war in Europe and drove investors away from riskier assets and into safe-havens. 

The price of the precious commodity rose by Rs3,400 per tola and Rs2,915 per 10 grams to settle at Rs130,300 and Rs111,711, respectively.

Speaking to Geo.tv, a gold dealer said that investors are closely watching developments regarding the Russia-Ukraine crisis.

"Till there is uncertainty, the market will continue to record gains," he said, adding that when the crisis will end, the prices will plummet.

In the international market, the price rose above the $1,900-mark, recording an increase of $77 per tola to settle at $1,972.

Russia launched an all-out invasion of Ukraine by land, air, and sea on Thursday, confirming the worst fears of the West with the biggest attack by one state against another in Europe since World War Two.

"There is obviously safe-haven demand coming into the (gold)price, but this crisis is very inflationary because it's adding upward pressure on commodities prices...it is recessionary as well in terms of the growth perspective," Saxo Bank analyst Ole Hansen said.

Oil prices shot up and stock markets slumped on Thursday as the situation worsened.

It is pertinent to mention that the gold rates in Pakistan are around Rs4,000 below the cost compared to the gold rate in the Dubai market.

Meanwhile, silver prices in the domestic market rose sharply by Rs30 per tola and Rs25.72 per 10 grams to settle at Rs1,490 per tola and Rs1,277.43 per 10 grams.

— With additional input from Reuters