Gold rates cross Rs300,000 per tola

KARACHI: Gold prices soared by Rs1,346 per tola on Friday in the local market, marking a historic milestone as rates breached the Rs300,000 per tola mark for the first time in the country’s history. The surge follows an increase in international gold prices.

According to the All Pakistan Sarafa Gems and Jewellers Association, gold rates climbed to Rs300,046 per tola, setting a new record high. Similarly, the price of 10-gram gold increased by Rs1,154, reaching Rs257,241.

In the international market, gold prices rose by $10, settling at $2,869 per ounce. Local gold prices are typically adjusted with a premium of $20 over international rates. Silver prices also followed the upward trend, with rates increasing by Rs51 to Rs3,378 per tola. The price of 10-gram silver rose by Rs44, reaching Rs2,896.

The unprecedented rise in gold prices is attributed to persistent global economic uncertainties, prompting investors to seek refuge in gold, widely regarded as a safe-haven asset. Market analysts noted that international geopolitical tensions, primarily triggered by US tariffs, and inflationary concerns continue to influence gold prices.

“The breach of the Rs300,000 per tola threshold is a reflection of both global market dynamics and local currency fluctuations,” a market expert explained. “Investors are increasingly turning to gold as a hedge against economic instability.”

The soaring prices are having varied effects on the local market. While gold remains a popular investment option, jewellers report declining consumer interest in purchasing gold jewellery due to its exorbitant prices.

“We’re seeing fewer customers coming in for traditional jewellery purchases,” said a jeweller in Karachi. “Many are opting for lightweight or alternative metal jewellery instead.” The significant price surge has sparked concern among industry stakeholders.

Despite the challenges, experts predict that gold prices may continue to climb if international market conditions remain volatile. One analyst advised investors and consumers to monitor market trends closely as geopolitical and economic factors continue to shape gold prices.