Gold prices in Pakistan continued their upward trajectory for the third consecutive day, reflecting both local demand trends and international market fluctuations. According to the All Pakistan Sarafa Gems and Jewelers Association, the price of 24-karat gold per tola (approximately 11.66 grams) surged by Rs. 1,100, pushing the new rate to a record Rs. 358,100.
This steady climb in gold prices signals growing concerns among investors and households alike, especially those preparing for wedding seasons or considering gold as a safe-haven investment amid global economic uncertainty.
Continued Rise in Local Bullion Markets
The price of 10 grams of 24-karat gold also increased by Rs. 944, bringing it to Rs. 307,013. This consistent rise in gold rates across Pakistan’s major bullion markets — including Karachi, Lahore, Islamabad, Peshawar, and Quetta — has captured the attention of traders and buyers nationwide.
International Market Push
The surge in local gold prices is also being mirrored in the global market. According to the association, gold prices in the international market rose by $11, bringing the per-ounce price to $3,356.
The global rise is largely attributed to increased investor interest in gold as a hedge against inflation, recession fears, geopolitical instability, and ongoing currency fluctuations. Central banks worldwide, including those in emerging economies, have also continued to accumulate gold reserves, putting additional upward pressure on prices.
What’s Driving the Surge?
Several key factors are behind the recent hike in gold prices:
- Global economic uncertainty: Rising inflation, central bank policy shifts, and concerns over economic slowdowns in major economies like the US and China have prompted investors to turn toward gold.
- Currency depreciation: In Pakistan, the depreciation of the rupee against the US dollar has further intensified gold’s rise in local markets.
- Demand spike: Seasonal demand for gold jewelry, especially in the upcoming wedding season, is also contributing to the upward momentum.
- Speculation: Traders expecting further gains are holding back inventory, creating a temporary supply-demand imbalance.
Impact on Local Buyers
While investors may view the rising prices as an opportunity for capital gains, everyday consumers, particularly those planning weddings or large purchases, are finding the trend concerning. Jewelers across Pakistan report a decline in physical gold sales due to the unaffordability of the metal.
Buyers are increasingly turning to lightweight jewelry or alternative materials to reduce costs. Some are also considering digital gold investments or waiting for prices to stabilize before making significant purchases.
Jewelers’ Outlook
Goldsmiths and jewelers expect prices to remain volatile in the coming weeks. “Unless there is a significant change in the global economic landscape or a strengthening of the rupee, we may see prices climbing even further,” said a senior member of the Sarafa Association.
They advise customers to monitor the market closely and plan purchases accordingly. Some jewelers are offering pre-booking services or installment plans to accommodate budget-conscious buyers.
Investment Perspective
For investors, gold remains one of the most reliable long-term investment options. With bank interest rates offering low real returns and stock markets experiencing fluctuations, many Pakistani investors are turning to gold to preserve their wealth.
Experts suggest that even though gold has reached historic highs, it may still offer room for growth, especially if inflation persists or geopolitical tensions escalate. However, they caution that short-term profit seekers should stay alert to possible corrections.
As gold continues to glitter in both the local and international markets, the coming days will determine whether this bullish streak sustains or stabilizes. For now, gold remains the center of attention — whether as a symbol of tradition, a store of value, or a strategic investment.
