Gold prices in Pakistan extended their upward trend on Tuesday, tracking volatility in the international bullion market where prices slipped from a three-week high amid profit-taking and a stronger US dollar, while investors monitored geopolitical tensions between Washington and Tehran and awaited clarity on the US tariff policy.

In the local market, the price of 24-karat gold rose by Rs3,400 per tola to Rs539,962, according to rates issued by the All-Pakistan Gems and Jewellers Sarafa Association. Similarly, the price of 10 grams increased by Rs2,915 to Rs462,930.

The latest gains follow Monday’s rise, when gold per tola climbed Rs3,000 to settle at Rs536,562, reflecting sustained domestic demand and currency-linked adjustments in line with global benchmarks.

Silver prices also moved higher, gaining Rs192 to reach Rs9,286 per tola in the local market. In the international market, gold retreated more than 2% on Tuesday after touching a three-week peak earlier in the session. Spot gold was quoted at $5,119.67 per ounce by 1433 GMT, down 2.1% on the day, while US gold futures for April delivery fell 1.7% to $5,138.30 per ounce, according to Reuters.

Market participants attributed the pullback largely to profit-taking and a firmer US dollar, although underlying geopolitical risks continued to lend support to bullion as a safe-haven asset. Traders remained focused on the outlook for US tariffs and the evolving standoff between the United States and Iran, with a fresh round of talks between the two countries scheduled later this week.

Adnan Agar, Director at Interactive Commodities, said intra-day volatility reflected shifting geopolitical expectations. Gold touched a high of $5,249 and a low of $5,093 and was later trading around $5,145, he said.

“Developments related to Iran are driving the market,” Agar said. There is a possibility of an agreement, but it appears more likely that tensions will persist, which is causing fluctuations, he noted.

Agar added that the broader trend in international prices had turned softer after recent highs. “If the Iran situation does not escalate and tensions ease, which currently seems less likely, then gold prices could decline. The next few days will be crucial for direction,” he said.

Analysts say bullion remains near record territory and may require a fresh catalyst, such as clearer signals on US trade policy or geopolitical escalation, to resume its upward trajectory. For Pakistan, where domestic gold prices are closely aligned with global movements and the rupee-dollar parity, international swings continue to transmit quickly into local retail rates.

Meanwhile, the Pakistani rupee posted a slight uptick against the US dollar on Tuesday, strengthening by 0.01% in the inter-bank market.

By the close of trading, the currency settled at 279.52 per dollar, up Rs0.03 from the previous session. On Monday, it had ended at 279.55 against the greenback, according to data released by the State Bank of Pakistan.

In global currency markets, the Japanese yen came under pressure as investors assessed the implications of renewed volatility stemming from US President Donald Trump’s tariff policies on international trade. The dollar index, which tracks the US currency against a basket of major peers, advanced 0.2% to 97.90.