Gold prices increased by Rs1000 on Wednesday, as rising inflation fears dulled risk appetite and boosted demand for the safe-haven metal.

Gold price in the local bullion market gained Rs1,000 per tola and Rs857 per 10 grams to settle at Rs125,800 per tola and Rs107,853 per 10 grams.

A day earlier, the precious commodity closed at Rs124,800 per tola and Rs106,996 per 10 grams. With a fresh increase of Rs1,000 per tola, the yellow metal has recorded an increase of Rs8,400 per tola during the last six sessions, according to All Sindh Saraf and Jewellers Association (ASSJA).

The fresh increase comes on the back of concerns regarding uncertain economic conditions which have sparked a flight from risky commodities towards safer ones.

The price of gold in the international market remained unchanged $1,825. Meanwhile, silver prices in the domestic market also remained unchanged at Rs1,440 per tola and Rs1,234.56 per 10 grams.