KEY POINTS
- Gold price rises by Rs 8,400 per tola to new all-time high
- Global bullion tops $4,000 an ounce amid safe-haven buying
- Investor anxiety and fiscal uncertainty drive record-breaking rally
- Silver rates remain steady at Rs 4,984 per tola
ISLAMABAD: Global investor anxiety sent gold prices soaring to unprecedented heights on Tuesday, with the precious metal surging past Rs 425,000 per tola in Pakistan and crossing $4,000 per ounce internationally for the first time in history.
The record-breaking rally reflects deepening fears over global fiscal instability, geopolitical tensions, and a sustained demand for investment safe-haven, according to the All Pakistan Gems and Jewellers Sarafa Association (APGJSA).
According to the Associated Press (AP), the continuing US government shutdown has also been factored in. However, it cannot be the only reason for bullion’s record-breaking rally, which began even before the shutdown.
Gold sales can rise sharply when anxious investors seek secure investments for their money. Even before the shutdown, the asset and other metals, such as silver, had seen wide gains over the last year, as President Donald Trump’s barrage of tariffs caused uncertainty around the outlook for the global economy.
More recently, the prospect of lower interest rates has also made gold a more attractive investment than interest-bearing investments.
APGJSA data showed that the per-tola price of 24-karat gold jumped by Rs 8,400 to Rs 425,178, while 10 grams of 24-karat gold rose by Rs 7,202 to Rs 364,521.
The 22-karat rate was recorded at Rs 334,156 per 10 grams, since the local markets moved in lockstep with global trends.
City-wise rates
Local jewellers confirmed record highs across major trading hubs in line with the national benchmark:
Karachi: Rs 425,200 per tola
Lahore: Rs 425,100 per tola
Islamabad: Rs 425,000 per tola
Peshawar & Quetta: Rs 424,900–425,000 per tola
These represent average retail prices compiled from APGJSA notifications circulated among bullion traders nationwide.
Global turmoil fuels record highs
Gold’s meteoric rise was being driven by a powerful mix of global risk aversion, flows to safe havens, and inflationary pressures. Reuters reported that gold extended its seventh consecutive weekly gain.
Growing expectations of U.S. interest rate cuts and the uncertainty related to the prolonged government shutdown have propelled the rally. Bloomberg noted that the shutdown “added fuel to the rally,” as investors sought protection from volatile equities and weakening fiscal confidence.
In global markets, Business Recorder quoted bullion at $4,039 per ounce, up $20 from the previous session, highlighting the widespread risk-off sentiment that has pulled capital away from traditional assets.
Analysts say central banks—particularly in emerging economies—are also increasing their gold holdings amid concerns over the dollar’s stability.
Local investor sentiment
In Pakistan, the global wave of anxiety has spilt into domestic markets. Dealers report subdued jewellery demand but heightened speculative buying and portfolio hedging as investors seek safety. Despite the rupee’s relative stability, local bullion rates remain tethered to global prices.
“The trend mirrors global behaviour — investors are prioritising safety over returns,” a Lahore-based jeweller told Daily Times.
Silver holds steady
Unlike gold, silver prices remained unchanged, with per tola silver at Rs 4,984 and 10-gram silver at Rs 4,274, as reported by the APGJSA.
Outlook
Market watchers expect continued volatility as geopolitical tensions, fiscal gridlock in the U.S., and central bank policy shifts drive investor sentiment. Analysts warn that further uncertainty could sustain the rally, but short-term corrections are possible if confidence returns to risk markets.
