Gold prices surge by Rs2,300 per tola to all-time high

KARACHI: Gold prices surged by Rs2,300 per tola on Wednesday, reaching another all-time high in the local market, driven by an increase in international gold prices. This latest rise has set new records for both local and international gold prices.

According to the All Sindh Saraf Jewellers Association, the price of gold in the local market has climbed to Rs264,000 per tola. Similarly, the price of 10-gram gold increased by Rs1,972, reaching Rs226,337.

In the international market, gold rates rose by $23, pushing the price per ounce to $2,524. Despite the increase in gold prices, silver rates remained unchanged, with prices holding steady at Rs2,900 per tola and 10-gram silver at Rs2,486.28.

The rise in gold prices reflects ongoing global geopolitical and economic uncertainties. Investors are turning to gold as a safe-haven asset in response to the escalating conflicts and economic crises, particularly in regions like Europe and the Middle East.

These factors have caused a continuous rise in gold prices internationally.Local jewellers noted that while gold prices in Pakistan follow international trends, the local market has been adjusting prices with a $20 premium compared to global rates. However, due to weak purchasing power in the country, gold rates here are often lower than international rates.

One goldsmith explained that despite the significant rise in gold prices, local demand remains low. “The weak purchasing power in the country has led to a decline in jewellery sales. Most people are turning to raw gold as an investment, rather than purchasing finished jewellery,” he said. He also noted that many people are selling their gold to meet essential financial needs, such as paying utility bills, amid rising inflation.

Analysts believe that if global tensions and economic uncertainty continue, gold prices are likely to maintain their upward trajectory. Investors are expected to keep seeking gold as a hedge against financial instability.

While the international market has continued to push gold prices higher, local consumers face challenges in keeping up with these rising costs, with the trend of gold as a refuge asset becoming more pronounced.The gold market’s direction remains closely tied to global geopolitical events, and continued volatility in international markets could drive prices even higher in the future.