Gold climbs as markets reassess risks after Trump pauses Iran attacks

Gold prices have risen to an almost three-week high on Wednesday amid re-appraisal of near-term risks following US President Donald Trump's agreement to halt attacks on Iran for two weeks, which reduced fears of inflation in energy costs.

The spot gold ​price has risen by 2.5% to stand at $4,819.52 per ounce as of 0726 GMT. In today's trading session, bullion prices rose above 3%, reaching their peak level since March 19.

Keeping up with international market performance, gold and silver prices in Pakistan have increased, with the price per tola rising to Rs15,700 to reach Rs504,162 and price per 10 grams gaining Rs13,460 to be Rs432,237.

In addition, silver prices have gained Rs440 to be Rs8,184 per tola, while prices per 10 grams have increased by Rs377 to be Rs7,016.

June-delivery US ⁠gold futures rose by 3.4%, closing at $4,845.30. President Trump declared that Washington reached a consensus on having a two-week ​lull in attacks after getting an effective ten-point proposal from Iran as a starting point for negotiation.

Trump’s declaration followed previous threats to open fire if Tehran did not allow passage through the Strait of Hormuz.

“Traders expected escalation to continue, but it got put on hold for two weeks, and that is a positive development for gold,” commented Nicholas Frappell, global head of institutional markets at ABC Refinery.