Gold rates surge Rs4,000 per tola to new highs

KARACHI: Gold prices surged by Rs4,000 per tola on Monday in the local market, driven by a significant increase in international market rates. The latest rise has pushed gold prices to unprecedented levels, both locally and globally.

According to the All Pakistan Sarafa Gems and Jewellers Association, gold rates soared to Rs303,000 per tola, setting a new record high. Similarly, the price of 10-gram gold increased by Rs3,429, reaching Rs259,773.

In the international market, gold rates rose by $42, settling at $2,903 per ounce. Local gold prices are typically adjusted with a premium of $20 over international rates. Silver prices also saw an upward trend. Silver rates increased by Rs43 to Rs3,373 per tola, while the price of 10-gram silver rose by Rs37 to Rs2,891.

Market analysts attributed the sharp rise in gold prices to persistent global economic uncertainties, including inflationary pressures and geopolitical tensions. “Investors are seeking refuge in gold as a safe-haven asset amid ongoing financial instability,” an expert explained.

The surge in gold prices is having mixed effects on the local market. While investors continue to show interest in gold as a hedge against economic uncertainty, jewellers report declining sales due to reduced consumer purchasing power.

“The rising prices have made gold jewellery unaffordable for many customers,” said a jeweller based in Karachi. “We are seeing more inquiries about investment-grade gold rather than traditional jewellery purchases.”