KARACHI (National Times)- Gold price in Pakistan extended gains on Monday amid depreciation in the Pakistani rupee and ongoing geopolitical crisis.

The price of the precious commodity rose by Rs600 per tola and Rs515 per 10 grams to settle at Rs130,000 and Rs111,454, respectively.

Bullion is considered a safe store of value during such uncertainties and also a hedge against rising inflation. Cumulatively, the yellow metal had gained Rs1,450 per tola in the local market during the week that ended on March 5.

In the international market, gold tested the psychological $2,000 mark in response to demand for safe-haven assets.

Gold gained $17 per ounce to settle at $1,991.

“The severity of the war in Ukraine and the uncertainty around its future trajectory have fuelled broad-based gold buying from safe-haven seekers, pushing prices towards $2,000 per ounce,” Julius Baer analyst Carsten Menke wrote in a note.

“A further escalation would likely lift prices further. The latter would likely have a more lasting impact, as it could push the world economy towards a stagflation scenario, which we see as very bullish for gold.”

“In the current environment, I would expect $2,000 to represent little more than a speed bump,” Norman said.

Gold rates in Pakistan are around Rs5,500 below cost compared to the rate in the Dubai market.

Meanwhile, silver prices in the domestic market remained unchanged at Rs1,480 per tola and Rs1,268.86 per 10 grams today.