Gold prices surge by Rs2,380 per tola, reaching record high

By Our Correspondent
March 29, 2025
This undated file photo shows processed gold bars. — AFP/File
This undated file photo shows processed gold bars. — AFP/File

KARACHI: Gold prices in the local market soared by Rs2,380 per tola on Friday, driven by a sharp increase in international prices. With this latest surge, gold has reached a new all-time high, reflecting growing investor interest amid global economic uncertainty and policy shifts in the United States.

According to the All Pakistan Sarafa Gems and Jewellers Association, the price of gold per tola climbed to Rs323,380, while the 10-gram gold rate rose by Rs2,041, settling at Rs277,246.

In the international market, gold prices jumped by $22 per ounce, bringing the price to $3,074 per ounce. Market analysts attribute this surge to the US government’s recent policies aimed at strengthening its gold reserves, which has significantly impacted global demand.

Experts believe that a major factor behind the rising gold prices is the US government’s decision to increase its gold reserves. Amid growing concerns over economic instability, inflation and currency devaluation, the US has been aggressively accumulating gold as a hedge against financial uncertainties.

The Federal Reserve’s monetary tightening policies, coupled with trade tensions and geopolitical risks, have further boosted investor interest in gold. With the US dollar facing pressure due to rising national debt and fiscal challenges, gold has become a preferred safe-haven asset for both institutional and individual investors.

Alongside gold, silver prices also saw an increase. The price of silver per tola rose by Rs30, reaching Rs3,610, while the 10-gram silver rate climbed by Rs27, settling at Rs3,096.

Analysts predict that gold prices may remain volatile in the coming weeks, depending on further global economic developments and US policy shifts. With central banks worldwide diversifying their reserves and increasing gold purchases, the upward trend in gold prices is likely to continue.Investors and traders are closely monitoring the situation, as gold remains a key asset amid global financial uncertainties.