Gold prices soar by Rs8,600 per tola to record high

KARACHI: Gold prices in Pakistan surged by a staggering Rs8,600 per tola on Wednesday, marking a new all-time high amid escalating international prices and growing investor interest in safe-haven assets. This substantial increase reflects mounting global economic uncertainty and heightened geopolitical tensions, pushing both local and global gold markets to fresh peaks.

According to the All Pakistan Sarafa Gems and Jewellers Association, the price of gold in the domestic market reached an unprecedented Rs348,000 per tola. Similarly, the price of 10-gram gold rose by Rs7,373, bringing it to Rs298,353.

In the international market, gold prices increased sharply by $86 per ounce to settle at $3,310, the highest ever recorded. Typically, gold prices in Pakistan are set with a $20 premium over global rates to account for import costs and local demand.

The recent rally in gold prices is being driven by multiple global factors, including a prolonged trade war, aggressive tariff policies by the US, currency devaluations and investor concerns over geopolitical instability. Analysts have also pointed to rising demand from central banks around the world, which are actively increasing their gold reserves to hedge against volatile markets and weakening fiat currencies. “Gold has once again emerged as the safest bet in these uncertain times,” said senior goldsmith Muhammad Shafi Khan while speaking to The News. “With the Trump administration reimposing tariffs and geopolitical tensions rising in several regions, investors are pulling out of riskier assets and flocking to gold.”

In addition, a shift in investor behaviour has also been observed with declining demand in the jewellery segment, but a significant increase is seen in raw gold purchases by investors. This transition is further propelling the prices upward.

Silver prices followed gold’s upward trajectory. Rates for silver increased by Rs63 to reach Rs3,460 per tola, while 10-gram silver prices rose by Rs54 to Rs2,966. Market watchers believe that unless global tensions ease or monetary policies shift significantly, gold prices may continue to climb in the short to medium term. For now, the bullion market remains in a strong bullish phase, fuelled by uncertainty and flight to safety. “Until we see some clarity on global policy and peace on the international front, gold will likely continue its upward march,” said Khan.