KEY POINTS
- Gold hits all-time highs: PKR 384,000 per tola and PKR 329,219 per 10 g on Monday.
- International bullion soars to $3,613/oz (with $20 premium) as dollar weakens.
- US Fed rate-cut bets and safe-haven demand drive a surge after soft jobs data.
- De-dollarisation push adds long-term momentum to gold’s appeal.
ISLAMABAD: Gold prices in Pakistan skyrocketed to unprecedented levels on Monday, with a tola (11.66g) surging by Rs 6,100 to PKR 384,000 and 10 grams rising to Rs 329,219, according to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), cited by Business Recorder.
This followed Friday’s rally that had lifted gold to PKR 377,900 per tola. The surge mirrors global bullion markets.
International gold climbed to $3,613 per ounce (including a $20 premium), a $61 gain for the day, while spot prices hovered near $3,583/oz after briefly touching an all-time high of $3,599.89 on Friday, according to Reuters. US December gold futures, however, eased 0.8% to $3,624 in early trading.
Analysts told ProPakistani that structural factors underpinning the rally extend beyond short-term Fed speculation. Mounting expectations of a US Federal Reserve interest rate cut later this month—triggered by weaker-than-expected US jobs data—have pushed investors into safe-haven assets.
A softer US dollar has magnified gold’s rise, with the greenback losing ground against major currencies in recent weeks. Historically, a weaker dollar makes dollar-denominated gold cheaper for non-US buyers, further boosting demand.
Beyond immediate monetary dynamics, gold is also benefiting from a broader trend of de-dollarisation. Several economies, including major energy exporters and BRICS members, are suggesting the trade in currencies other than the dollar.
Analysts argue that central banks are increasing their bullion reserves to hedge against currency risk. According to the World Gold Council, central bank gold purchases remain at historically high levels as part of this shift.
Silver followed the gold trend in Pakistan, with prices rising PKR 23 to reach PKR 4,338 per tola, according to the APGJSA data.
For Pakistan’s economy, the rally presents a double-edged sword. On the one hand, it strengthens the value of household gold holdings, a traditional savings instrument; on the other, it reflects global uncertainty, a weaker rupee, and ongoing inflationary pressures that strain domestic consumers.
