The latest update on gold prices in Pakistan shows another significant increase, as local rates followed an upward trend in the international bullion market. On Friday, gold became more expensive across the country, reflecting global price movements, currency fluctuations, and investor sentiment toward safe-haven assets.
According to market data released by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of gold per tola increased by Rs2,500, reaching Rs526,462. Meanwhile, the rate for 10 grams of gold rose by Rs2,144, bringing it to Rs451,356. This rise came just a day after a sharp surge of Rs7,900 per tola, when gold touched Rs523,962 on Thursday.
Why Gold Prices Are Rising
The recent jump in gold prices in Pakistan is closely linked to international market trends. Globally, gold gained $25 per ounce, reaching $5,037, including a $20 premium. International bullion prices play a major role in determining local gold rates because Pakistan imports gold and depends heavily on global benchmarks.
When global gold prices rise, local markets usually follow the same direction. Additionally, the exchange rate of the Pakistani rupee against the US dollar also impacts domestic gold prices. If the rupee weakens, gold becomes more expensive locally even if international rates remain stable.
Investors often turn to gold during times of economic uncertainty, high inflation, or geopolitical tensions. This increased demand pushes prices upward both globally and domestically.
Weekly Trend and Market Momentum
Looking at the broader trend, gold prices in Pakistan have shown strong upward momentum in recent sessions. The single-day gain of Rs7,900 earlier in the week indicates heightened volatility in the market. Such sharp increases suggest that traders and investors are reacting quickly to global developments.
Bullion dealers note that fluctuations in international inflation data, central bank policies, and global interest rates are influencing gold’s performance. When interest rates are expected to fall, gold often becomes more attractive because it does not offer interest returns but serves as a store of value.
The current upward cycle reflects a combination of strong global prices and steady local demand.
Silver Prices Also Climb
Alongside gold, silver prices also recorded an increase. Silver per tola rose by Rs170, reaching Rs8,574. Like gold, silver prices are influenced by international markets and currency movements.
Although silver is less expensive than gold, it is widely used in jewelry, industry, and investment. Rising silver prices often indicate broader strength in precious metals.
The parallel rise in both metals suggests that investor interest in safe-haven assets remains strong.
Impact on Buyers and Investors
The surge in gold prices in Pakistan directly affects jewelry buyers, wedding shoppers, and investors. For families planning weddings or purchasing gold ornaments, rising prices mean higher expenses. On the other hand, investors who bought gold earlier may benefit from capital gains.
Gold has traditionally been considered a safe investment in Pakistan. Many people prefer buying physical gold as a hedge against inflation and currency depreciation. When inflation rises or economic uncertainty increases, demand for gold typically strengthens.
However, experts advise buyers to monitor trends carefully. Since gold markets can be volatile, prices may experience corrections after sharp increases.
Factors to Watch Ahead
Market participants are closely observing several factors that could influence gold prices in Pakistan in the coming days:
- Global Inflation Data: Higher inflation often pushes investors toward gold.
- US Dollar Strength: A stronger dollar can impact global gold prices.
- Interest Rate Decisions: Central bank policies significantly affect bullion markets.
- Exchange Rate Movements: The rupee-dollar rate plays a key role in local pricing.
- Geopolitical Developments: Political tensions can increase demand for safe-haven assets.
Any significant change in these factors could either extend the current rally or lead to short-term corrections.
Is This a Long-Term Trend?
Whether the current rise in gold prices in Pakistan continues depends largely on global economic conditions. If international markets remain bullish and the rupee faces pressure, local gold prices may stay elevated.
Markets rarely move in a straight line. Short-term profit-taking by investors or improved economic indicators globally could slow down the pace of increases.
For long-term investors, gold remains a traditional hedge against uncertainty. For short-term traders, price swings present both opportunities and risks.
The recent increase in gold prices in Pakistan reflects strong global trends and local market dynamics. With gold per tola now at Rs526,462 and international rates crossing $5,000 per ounce, the precious metal continues to attract attention from investors and buyers alike.
As markets respond to global inflation, currency movements, and economic signals, price volatility is likely to continue. For now, the upward trend shows that gold remains a preferred safe-haven asset in uncertain times.
