Gold prices surge by Rs7,800 per tola after brief pause

KARACHI: Gold prices jumped sharply by Rs7,800 per tola in the local market on Monday, ending a brief period of price stability and reflecting renewed momentum in the international bullion trade.

According to the All Pakistan Sarafa Gems and Jewellers Association, the price of gold reached Rs350,000 per tola, reversing the previous downward trend. Similarly, the price of 10-gram gold increased by Rs6,687, settling at Rs300,068.

The rally in local prices mirrored a strong rebound in the international market, where gold prices surged by $76, closing at $3,316 per ounce. Local prices typically include a $20 premium over international rates, accounting for market costs and adjustments related to demand, supply and import duties. Bullion traders attributed the uptick to rising global economic uncertainties and persistent geopolitical tensions, particularly in the context of ongoing trade disputes and currency fluctuations, which have driven investors towards gold as a safe-haven asset. “After a few days of price correction and consolidation, the gold market has picked up again,” said a senior Karachi-based jeweller. “With international markets reacting to inflationary pressures and geopolitical risks, we expect demand for gold to stay strong in the coming weeks.” Silver prices also followed the upward trend. The price of silver per tola rose by Rs43, reaching Rs3,425, while the 10-gram silver price increased by Rs37 to Rs2,936.

This latest surge reflects a continuation of gold’s volatile trajectory throughout 2025. The precious metal had hit an all-time high of Rs363,700 per tola on April 22 before falling sharply to Rs352,000 two days later. Analysts suggest that volatility may continue due to ongoing shifts in international economic indicators and investor sentiment. With inflation concerns and economic uncertainty still present in the global landscape, gold’s role as a protective asset appears more significant than ever. Traders expect continued movement in the market in the days ahead as global conditions evolve.