Gold hits new peak, soars by Rs4,900 per tola

KARACHI: Gold prices in the local market soared to a new record high on Saturday, with an increase of Rs4,900 per tola, reflecting a global trend that saw international market prices hitting new peaks.

The All Sindh Saraf Jewellers Association reported that gold rates touched Rs245,100 per tola, an unprecedented level in the country's history. Concurrently, the cost for 10 grams of gold rose by Rs4,200, amounting to Rs 210,134.

The rally currently being witnessed in the domestic bullion extends from March, in which the yellow metal gained a substantial Rs19,100 in line with the surge in international gold prices.

Internationally, gold prices jumped by $44 to

$2,350 per ounce, the highest rate ever recorded. This marked the third consecutive weekly rise for the yellow metal due to strengthened optimism for interest

rate cuts, further buoyed by rising Middle East tensions this week.

Local market prices are adjusted with a premium of $20 over the international market rates.

Local silver rates remained static at Rs2,650 per tola, and the price for 10 grams of silver stayed at Rs2,271.94.

The spike in domestic prices comes amid a substantial uptick in the global market, where gold is increasingly sought after by investors amidst escalating geopolitical tensions in Europe and the Middle East.

While the jewellers’ association releases gold rates based on the bullion rate formula, these are not uniformly followed by jewellers in other major cities across the country.

A jeweller noted the discrepancy in gold rates among different cities, stating, “Rates in Peshawar and Lahore differ from those in Karachi. In Peshawar, gold is weighed in grams instead of tolas, with one tola approximately equivalent to 12.6 grams, leading to variations in prices.”

An analyst highlighted that gold rates in Pakistan have remained relatively stable due to the rupee's stability in recent months.

However, he cautioned that without this stability, gold prices could have surged to all-time highs much earlier.

The continuous upward trajectory of gold prices underscores its status as a safe-haven asset amidst geopolitical uncertainty and economic instability. Investors are turning to gold as a means of protecting their wealth and hedging against potential risks in the global economy.