Gold prices in Pakistan surged dramatically on Tuesday, marking one of the biggest single-day increases in recent months. According to the All Pakistan Sarafa Gems and Jewellers Association, the price of 24-karat gold per tola rose by an astonishing Rs. 6,100, pushing the new rate to an all-time high of Rs. 356,100.
Similarly, the price of 10 grams of 24-karat gold jumped by Rs. 5,232, reaching Rs. 305,300. Meanwhile, 10 grams of 22-karat gold also climbed to Rs. 279,868 after an increase of Rs. 4,796. This surge has caught the attention of investors, jewelers, and consumers alike, raising both excitement and concern across financial and retail sectors.
In tandem with the local market’s rise, global gold prices experienced a significant rally. The international price of gold increased by $61 per ounce, reaching $3,377. Analysts attribute this upward trajectory to various global economic factors, including geopolitical tensions, inflationary fears, and ongoing instability in major economies that have led investors to seek refuge in safe-haven assets like gold.
Local Market Reactions
Jewelry traders in Karachi, Lahore, and Islamabad reported increased foot traffic from both buyers and investors after the announcement. We’ve been seeing more customers since last month, but today’s price hike brought even more people wanting to lock in purchases before it goes even higher,said Irfan Qureshi, a jeweler at Saddar Market in Karachi.
However, he also noted that while investment demand has increased, sales for bridal and fashion jewelry have slowed down. People are postponing big purchases like wedding sets because of the prices. Many customers are coming just to sell old jewelry or inquire about rates.
Silver prices also reflected upward momentum, albeit more modestly. Per tola silver rose by Rs. 57 to reach Rs. 3,482, while the price of 10 grams of silver climbed by Rs. 22 to Rs. 2,985. While silver remains a more affordable alternative for many consumers, it has not seen the same explosive growth as gold in recent weeks.
Global Factors Driving the Surge
Financial experts cite multiple international factors contributing to gold’s historic rise. One of the key drivers is uncertainty in global financial markets, with concerns about interest rates, debt defaults, and weakening currencies prompting investors to shift toward gold.
Gold traditionally performs well during times of economic uncertainty, said financial analyst Fahad Hussain. With persistent inflation in major economies, questions about the future of interest rates, and geopolitical risks like conflicts and trade wars, investors globally are increasing their exposure to gold.
Additionally, central banks in several countries have been increasing their gold reserves, further driving demand. Reports suggest that countries like China, India, and Russia have stepped up purchases to diversify away from the U.S. dollar, putting upward pressure on global gold prices.
Impact on Pakistani Consumers and Investors
For Pakistani households, especially those planning weddings or major jewelry purchases, the rising prices have made gold increasingly unaffordable. A bridal jewelry set that cost Rs. 1.5 million last year now costs nearly Rs. 2 million, lamented Shahbaz Khan, a jeweler in Lahore’s Liberty Market. Many middle-class families are struggling to keep up with these prices.
Meanwhile, gold investors are celebrating their returns. Those who invested in gold six months ago have already seen double-digit percentage gains,said Saad Malik, an independent financial advisor. Gold is proving once again to be a reliable store of value in uncertain times.
However, Malik cautioned that gold’s rapid rise could trigger volatility or corrections in the near future. No asset goes up forever. Investors should diversify their portfolios and not put all their money into gold expecting continuous gains.
Future Outlook
Market watchers remain divided on whether gold prices will continue to rise or stabilize in the coming weeks. Some predict further gains if inflation continues and geopolitical risks escalate, while others anticipate a plateau or slight pullback as markets adjust to the current highs.
For now, jewelers and consumers in Pakistan are adapting to the new reality of expensive gold. Many are turning to alternative metals like silver or gold-plated jewelry, while investors are closely monitoring daily fluctuations to time their buying and selling decisions.
With gold crossing the Rs. 350,000 mark per tola, its symbolic status as a measure of wealth and security remains as strong as ever in Pakistan. Yet for many ordinary citizens, it has also become a symbol of growing financial challenges in an inflationary economy.
As international and local factors continue to drive the precious metals market, all eyes will remain on gold in the weeks ahead, with consumers, traders, and investors alike waiting to see where prices will head next.
The latest spike in gold prices marks a historic moment for Pakistan’s bullion market. Whether viewed as an investment, a luxury, or a cultural necessity, gold’s soaring price tag is reshaping buying habits and financial strategies across the country. With economic uncertainty showing no signs of abating, gold’s role as both a safe haven and a challenge for affordability is likely to persist.
