Key Points
- The All-Pakistan Gems and Jewellers and Sarafa Association reports that the local market surge reflects strong gains in global bullion prices
- Global gold prices climbed near $5,600 per ounce, driven by investor demand amid economic and geopolitical uncertainty
- Silver prices also hit record levels domestically and internationally
ISLAMABAD: Gold prices in Pakistan climbed to unprecedented levels on Thursday, with the price of 24-karat gold per tola rising by Rs 21,200 to settle at Rs 572,862, the highest ever recorded in the local bullion market, according to the All-Pakistan Gems and Jewellers and Sarafa Association (APGJSA).
This sharp increase comes amid a global bullion rally, where international gold prices approached $5,600 per ounce as investors sought refuge in precious metals amid ongoing economic uncertainties and geopolitical tensions.
Local market data show the price of 10 grams of 24-karat gold also climbed by Rs 18,175 to Rs 491,136, continuing the upward trajectory of record gains seen over the past weeks.
Silver has followed a similar path, with the price of per tola rising by Rs 264 to Rs 12,175, while 10-gram silver increased by Rs 227 to Rs 10,438, both historic highs in domestic trading.
Global bullion trends and driving factors
The rally in Pakistan mirrors strong movements in global bullion markets. International spot gold extended its powerful run, with prices rising by about $212 per ounce to around $5,505 before nearing a fresh high close to $5,600.
Analysts attribute the sustained strength to heightened safe-haven demand, where investors buy precious metals during periods of economic uncertainty, currency volatility and geopolitical risk.
Market observers say a combination of geopolitical tensions, weakening major currencies, especially the US dollar, and expectations of continued monetary policy accommodation are the key factors underpinning the bullion surge.
These dynamics have encouraged both institutional and retail investors to increase allocations to gold and silver as portfolio hedges, contributing to broader upward pressure on prices.
Local association’s view and consumer impact
According to the APGJSA, the pricing reflects not only international trends but also robust domestic demand amid heightened investor interest. The association’s officials note that the pace of gains seen, with daily increases of more than Rs 20,000 per tola, is unprecedented in Pakistan’s history, outpacing previous sharp rallies.
Consumers and bullion traders are closely watching the developments. Some jewellers reported increased inquiries from investors and buyers seeking physical gold coins and bullion bars, even as higher prices challenge traditional jewellery demand.
Others caution that rapid price movements could lead to near-term volatility depending on future global market conditions and currency movements.
Outlook and silver’s performance
Silver has also been swept up in the rally, with both domestic and international rates hitting record levels. In global markets, silver was reported near $119–$120 per ounce, reflecting strong investor interest alongside gold, according to Reuters.
Analysts suggest that precious metals markets may remain elevated in the near term if global uncertainties persist. However, any significant changes in monetary policy, currency strength, or geopolitical developments could rapidly alter price trajectories.
