Gold jumps above Rs519,000 per tola as global prices rebound

• 10-gram gold gains Rs10,030 to Rs445,354.
• Silver increases Rs444 to Rs8,269 per tola.
• Global gold settles at $4,954.92 per ounce.

Gold prices in Pakistan jumped on Saturday, tracking a sharp rebound in the international market and lifting the local per-tola rate back above the Rs519,000 mark.

In the local market, gold per tola rose by Rs11,700 to Rs519,462, while 10-gram gold gained Rs10,030 to Rs445,354, according to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA). Silver also strengthened, with the per-tola price up Rs444 to Rs8,269.

The move reversed the previous session’s slide, when gold per tola fell by Rs21,400 to Rs507,762.

In the international market on Friday, gold rebounded and was set for a weekly gain, helped by bargain hunting, a slightly weaker dollar and lingering concerns over US-Iran talks in Oman, while silver recovered from a 1-1/2-month low.

Spot gold rose 3.9% to $4,954.92 per ounce by 2:18pm ET (1918 GMT), recouping losses during a volatile Asia session following Thursday's 3.9% decline. The yellow metal was headed for a weekly gain of about 2%.

US gold futures GCcv1 for April delivery settled 1.8% higher at $4,979.80 per ounce.

CME Group had flagged a delay in publishing metals settlement, earlier in the day.

The US dollar index fell 0.2%, making greenback-priced bullion cheaper for overseas buyers.

"The gold market is seeing perceived bargain hunting from bullish traders," said Jim Wyckoff, senior analyst at Kitco Metals.

Iran's top diplomat on Friday said that nuclear talks with the US mediated by Oman were off to a "good start" and set to continue. The remarks could help allay concerns that failure to reach a deal might nudge the Middle East closer to war.

Wyckoff said gold's rebound lacks momentum and the metal is unlikely to break records without a major geopolitical trigger.

Gold, a traditional safe haven, does well in times of geopolitical and economic uncertainty.

Meanwhile, spot silver rose 8.6% to $77.33 an ounce after dipping below $65 earlier in the session, but was still headed for a weekly drop, down over 8.7%, following steep losses last week as well.

"What we're seeing in silver is huge speculation on the long side," said Wyckoff, adding that after years in a boom cycle, gold and silver now appear to be entering a typical commodity bust phase.

CME Group raised margin requirements for gold and silver futures for a third time in two weeks on Thursday to curb risks from heightened market volatility.

Spot platinum added 5.4% to $2,093.5 per ounce, while palladium rose 6.2% to $1,717.05.