Gold rates surge by Rs8,100 per tola to new record high

KARACHI: Gold prices soared by Rs8,100 per tola in the local market on Monday, reaching yet another all-time high amid a persistent rally in the international bullion markets driven by global economic uncertainty and escalating geopolitical tensions.

According to the All Pakistan Sarafa Gems and Jewellers Association, the price of gold climbed to Rs357,800 per tola, while the price of 10-gram gold increased by Rs6,944, settling at Rs306,755. In the international market, gold surged by $69 to reach $3,395 per ounce, continuing its upward trajectory that began earlier this year. Since January 1, 2025, when gold was trading at Rs272,600 per tola in the local market and $2,614 per ounce globally, the precious metal has registered a dramatic rise of Rs85,200 per tola (or over 31 per cent) and $781 per ounce (an increase of nearly 30 per cent).

This rapid appreciation reflects heightened global demand for gold as investors flee to safe-haven assets amid ongoing financial and political instability.

Muhammad Qasim Shikarpuri, president of the All Pakistan Sarafa Gems and Jewellers Association and Chairman Karachi Bullion Exchange, said that the surge is largely due to the intensifying trade war between the US and China, which has been further aggravated by the imposition of new tariffs. “None of the countries are showing any retreat,” he remarked, adding that the standoff has triggered fears of a prolonged economic slowdown, pushing investors toward gold.

“The demand for gold has surged globally as a hedge against depreciating currencies and economic uncertainty,” Shikarpuri said. “There is strong investor interest, but availability is scarce. Buyers are active in the market, but sellers are few.”

He cautioned that if the demand continued to rise, it might exert pressure on the Pakistani rupee, despite current currency controls. “If this momentum persists, it will be difficult to manage the rupee. A sharp devaluation could follow,” he warned.

Goldsmiths in the open market reported even higher rates than the official figures. By the time this report was filed, gold was being traded at around Rs372,000 per tola in the retail market, indicating a significant premium due to supply constraints and speculative demand. Meanwhile, silver prices also registered gains. The rate increased by Rs24 to Rs3,441 per tola, while the 10-gram silver price rose by Rs21 to Rs2,950.

Bullion dealers anticipate that the upward trend in gold prices is likely to continue in the coming weeks, fuelled by uncertain global economic conditions, central bank purchases, and investor appetite for safe-haven assets.