Gold prices significantly increased in Pakistan on Wednesday as the yellow metal advanced in the international market amid the ongoing Israel-Hamas conflict in the Middle East.

The per tola gold was priced at Rs206,500, after an increase of Rs6,400, according to rates shared by the All Pakistan Gems and Jewellers Sarafa Association (APGJSA).

The price of 10 gram gold stood at Rs177,040, with a rise of Rs5,487.

In the previous session, gold per tola price in Pakistan had stood at Rs200,100, witnessing a decline of Rs1,900.

Tension increased in the Middle East after hundreds were killed in a single strike to a hospital in Gaza on Tuesday, a day before US President Joe Biden was planned to arrive in Israel.

Amid fears of the conflict turning into a regional war, investors have turned to gold, considered as a safe-haven asset, causing a surge in its demand.

In the international market, gold was priced at $1,959 per ounce, after an increase of $36.

Moreover, the Pakistani rupee registered significant losses against the US dollar, as it depreciated 1.16% in the inter-bank market on Wednesday.

As per the State Bank of Pakistan, the rupee settled at 280.29 after a decrease of Rs3.26 in the inter-bank market.

Silver rates remained stable at Rs2,500 per tola.