Gold prices in Pakistan continued their upward momentum over the weekend, mirroring a sharp rise in international markets. On Saturday, the price of gold per tola in the local market reached an all-time high of Rs338,500, marking a significant increase of Rs2,400 in just one day.
According to data released by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of 10-gram gold also surged, settling at Rs290,209 after gaining Rs2,058.
Ongoing Rally in Local Market
This latest surge follows a steady climb in gold prices throughout the week. Just a day earlier, on Friday, the price per tola had risen by Rs900, hitting Rs336,100. The persistent increase is a reflection of both international market dynamics and a growing local demand, as economic uncertainty continues to influence investment behaviors in Pakistan.
Global Market Influence
The rise in domestic gold prices is closely linked to developments in the global bullion market. On Saturday, the international gold rate jumped by $24 per ounce, reaching $3,201 per ounce. This includes a $20 premium, indicating strong demand and tight supply across global markets.
Experts attribute the surge in gold prices worldwide to a combination of factors including:
- Geopolitical tensions and conflicts that drive investors towards safe-haven assets.
- Currency fluctuations and expectations of potential interest rate cuts by major central banks.
- Hedge against inflation, as global economies struggle with rising prices and uncertain growth prospects.
Silver Also Gains
The bullish trend wasn’t limited to gold alone. Silver prices also saw an increase in Pakistan. On Saturday, the price of silver per tola rose by Rs33, bringing it to Rs3,410. Similarly, the price of 10-gram silver rose to Rs2,925.36, reflecting consistent growth in precious metals across the board.
Investor Sentiment and Market Outlook
With the Pakistani rupee facing depreciation pressures and inflation remaining elevated, precious metals have become a preferred investment option for both individual and institutional investors in the country. Gold is seen as a store of value, and its rising price reflects a flight to safety amid economic turbulence.
Jewellers and traders anticipate that if the global uptrend continues, gold prices in Pakistan could climb even higher in the coming weeks. Many buyers are already making advance purchases in fear of further hikes, especially with wedding season underway, which traditionally boosts gold demand.
What This Means for Consumers
While the surge is good news for gold investors and traders, it presents a challenge for regular consumers, particularly those planning weddings or events requiring gold jewelry. Rising costs are making it increasingly difficult for middle-income households to afford gold, pushing many toward alternatives or lighter-weight jewelry options.
As global economic uncertainty persists, gold continues to shine as a beacon of stability. For Pakistan, the current price surge reflects not only international market movements but also local economic concerns. Whether this rally will sustain or correct in the near future depends largely on global financial developments, including interest rate decisions, geopolitical outcomes, and currency trends.
