Gold prices rise by Rs1,800 per tola to hit new high

KARACHI: Gold prices continued their upward momentum on Saturday, increasing by Rs1,800 per tola in the local market in line with gains in the international market. With this rise, gold rates have once again hit an all-time high, reflecting ongoing global economic uncertainty and investor preference for safe-haven assets.

According to the All Pakistan Sarafa Gems and Jewellers Association, the price of gold in the local market reached Rs340,600 per tola. Likewise, the rate for 10-gram gold increased by Rs1,423, bringing it to Rs267,684.

In a LinkedIn post on Saturday, CEO of brokerage firm Topline Securities Sohail Mohammed said that the value of Pakistan’s gold reserves has “risen significantly”, reaching nearly $6 billion -- a three-fold increase over the past 10 years.

Per Mohammed, “this rally not only boosts the country’s external asset position but also reinforces the strategic importance of gold as a vital component of foreign exchange reserves.”

In the international market, gold prices climbed by $18 to settle at $3,236 per ounce, continuing a trend of record-breaking highs. Local gold prices are typically calculated by applying a $20 premium over international rates, accounting for import costs and market dynamics.

Despite the sharp rise in gold prices, silver rates remained unchanged, standing at Rs3,234 per tola and Rs2,772 for 10 grams, respectively.

Gold prices have been rallying globally due to heightened economic and geopolitical tensions, coupled with increasing central bank purchases and a shift in investor interest from riskier assets to gold bullion. The trend has also been supported by expectations of prolonged inflationary pressure and slowing global growth.

Traders and analysts believe the current trend is likely to persist unless there is a major shift in global economic or political conditions.