Gold prices in Pakistan inched down on Friday while international bullion markets posted strong gains of more than 3% amid renewed safe-haven buying and continued uncertainty about the Middle East conflict.

Globally, spot gold rose 3.6% to $4,536.29 per ounce at 11:39 am ET (1538 GMT), according to Reuters. US gold futures for April delivery also climbed 3.6% to $4,533.70, reflecting increased investor appetite after a brief pullback earlier in the week.

Despite the international surge, local bullion prices moved lower due to latent impact. In Pakistan's market, the price of gold per tola fell to Rs467,262 after a decline of Rs1,000 during the day.

Similarly, the price of 10-gram gold dropped by Rs858 to settle at Rs400,601, according to the All-Pakistan Gems and Jewellers Sarafa Association.

On Thursday, gold had already witnessed a sharp correction, with the per-tola rate falling by Rs11,000 to Rs468,262.

Commenting on the broader market dynamics, Interactive Commodities Director Adnan Agar said gold has increasingly shifted from being purely a safe-haven asset to an "asset class in its own right," driven by sustained institutional and central bank buying over the past two years.

He noted that geopolitical developments, central bank gold sales in some economies, and dollar strength continue to influence volatility in precious metals. He added that uncertainty around the Middle East conflict is sustaining demand, but market reactions are increasingly complex due to the shifting investment behaviour.

Agar further observed that global liquidity conditions, currency pressures, and geopolitical risks are likely to keep gold prices range bound with intermittent spikes, rather than a one-directional trend.

Overall, analysts expect bullion markets to remain sensitive to geopolitical headlines and monetary signals in the coming weeks.

Meanwhile, the Pakistani rupee posted a marginal gain of Rs0.03 in the inter-bank market on Friday to close at 279.17 against the US dollar.