The gold price in Pakistan has started rising once again, marking a significant increase in the domestic bullion market. According to the All Pakistan Gems and Jewelers Association, the price of gold per tola has surged by Rs 3,500, reaching Rs 419,862. Similarly, the rate for 10 grams of gold has increased by Rs 3,000, now standing at Rs 359,963. This rise comes as gold prices in the international market climbed by $35 to reach $3,975 per ounce.
Gold Price in Pakistan Sees Sharp Uptrend
The latest surge in the gold price in Pakistan reflects both domestic and international market dynamics. After a brief period of decline, where gold had dropped by as much as Rs 14,000 per tola, the precious metal is once again gaining momentum. The recent increase highlights renewed investor interest in gold as a safe-haven asset amid global economic uncertainties and currency fluctuations.
Local traders and analysts believe that the price hike is largely influenced by international market movements, coupled with a weaker Pakistani rupee against the US dollar. The combination of these factors has driven up gold rates across the country, with demand remaining steady among investors and jewelers.
Global Gold Prices Drive Local Market
The international gold market plays a key role in determining the gold price in Pakistan. As global prices rose by $35 per ounce, local markets quickly adjusted their rates. Analysts attribute the global increase to growing geopolitical tensions, rising inflation fears, and anticipation of changes in US Federal Reserve policies.
Investors worldwide are turning to gold as a reliable store of value amid uncertainty in equity and currency markets. With central banks maintaining cautious monetary policies and global economies facing slow growth, gold continues to be seen as a hedge against inflation and financial instability.
Domestic Market Response
The rise in the gold price in Pakistan has affected jewelry markets across major cities including Karachi, Lahore, Islamabad, and Peshawar. Jewelers report a noticeable slowdown in customer purchases as retail prices rise, although investment demand remains consistent.
Many buyers prefer to hold off until prices stabilize, while investors continue to see gold as a secure option for wealth preservation. Despite higher costs, gold remains one of the most popular investment avenues in Pakistan, especially among middle- and upper-income households.
Factors Behind the Rising Gold Price
Several factors are contributing to the current surge in the gold price in Pakistan:
- Global Economic Uncertainty: The ongoing geopolitical tensions and global inflation trends are prompting investors to seek refuge in gold.
- Currency Depreciation: The weakening of the Pakistani rupee against the US dollar increases local gold prices, even when international rates rise modestly.
- Inflation Concerns: With domestic inflation remaining high, gold continues to serve as a preferred hedge against declining purchasing power.
- Investment Demand: The fear of financial market volatility encourages investors to diversify their portfolios by including gold.
Impact on Consumers and Jewelers
The continuous rise in the gold price in Pakistan has mixed effects on consumers and jewelers. For consumers, particularly those planning weddings or major purchases, the higher prices make jewelry less affordable. As a result, many jewelers report fewer walk-in customers and reduced retail sales.
On the other hand, investors and gold traders benefit from rising prices, as their existing holdings gain in value. Many traders are predicting that prices could rise further if global conditions remain unstable and the rupee continues to weaken.
International Market Outlook
Globally, gold’s upward trend is expected to continue in the short term. Analysts predict that if inflation remains persistent and interest rates stay high, gold will maintain its appeal as a stable asset. The gold price in Pakistan will likely follow global patterns, fluctuating with international developments and foreign exchange rates.
With gold reaching near-record highs in international markets, Pakistan’s domestic prices are expected to remain elevated in the coming weeks. Any relief for consumers would depend on currency stabilization and global price corrections.
Future Projections for the Gold Market
Experts forecast that the gold price in Pakistan could continue its upward trajectory if current trends persist. The festive season and wedding months typically bring an increase in gold demand, which could further support prices. However, if the rupee strengthens or global markets stabilize, minor price corrections could follow.
Investors are advised to stay cautious and monitor both international gold prices and currency movements before making large purchases or sales.
The gold price in Pakistan has seen another substantial rise, with an increase of Rs 3,500 per tola and Rs 3,000 per 10 grams. The surge is largely driven by global price hikes and domestic currency depreciation. While this trend benefits investors holding gold, it poses challenges for consumers and jewelers due to reduced affordability.
As global economic uncertainty continues, gold remains one of the safest and most reliable investment options. The coming weeks will determine whether this upward trend stabilizes or continues, but for now, the gold price in Pakistan is firmly on the rise.
