Gold price in Pakistan gained Rs 900 per tola and Rs 771 per 10 grams to settle at Rs 133,300 and Rs 114,283, respectively. Meanwhile, silver prices in the domestic market remained unchanged at Rs 1,520 and Rs 1,303.15.
Gold prices surged to their highest level since mid-March on Monday, as risk sentiment was lowered by the Russia-Ukraine conflict, driving investors towards safe heaven assets such as gold.
Gold was up 0.8 percent in spot] to $1,989.65 per ounce, its highest level since March 11. Gold futures in the United States were up 0.9 percent at $1,993.40.
According to Ilya Spivak, a currency strategist at DailyFX, there appears to be some risk aversion in the market, with some overhang from the Russia-Ukraine crisis, while tight liquidity might potentially exacerbate price activity.
During times of political and economic turmoil, bullion is regarded as a secure reserve currency.
While another test of $2,000 is likely the route of least resistance for gold, $2,100 is the bigger, more potent figure to watch, as there are some significant peaks to conquer to make the case for long-term gains, according to Spivak.
On Monday, rates on the benchmark 10-year US Treasury note rose to their highest level since December 2018, halting rises in zero-yield gold.
According to Reuters technical expert Wang Tao, spot gold might advance into a range of $1,998 to $2,012, after piercing through a resistance level of $1,984 per ounce.
In March, China’s economy shrank as consumption, real estate, and exports all took a hit, putting the brakes on faster-than-expected first-quarter growth estimates and weakening an outlook already weakened by COVID-19 restrictions and the Ukraine conflict.
Meanwhile, spot silver increased by 0.7 percent to $25.85 per ounce, platinum increased by 1.7 percent to $1,006.27, and palladium increased by 1.4 percent to $2,400.60 per ounce.