Gold prices surge by Rs5,900 per tola amid global market gains

KARACHI: Gold prices in Pakistan rebounded sharply on Monday, rising by Rs5,900 per tola, after a notable uptick in global bullion markets. This marks a strong recovery in the local market following recent volatility in precious metal prices.

According to the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of gold in the domestic market climbed to Rs353,100 per tola, while the 10-gram gold rate increased by Rs5,058, settling at Rs302,726.

In the international market, gold prices also registered a solid gain, increasing by $59 to reach $3,347 per ounce. Pakistani gold rates are typically adjusted with a $20 premium over global rates to account for import costs, currency fluctuations, and local demand dynamics.

Bullion traders attributed the price surge to renewed investor interest in gold as a safe-haven asset amid concerns over a slowdown in global economic growth and uncertainty around central bank policies.

“The rebound in gold prices was driven by growing expectations that major central banks, particularly the US Federal Reserve, may delay further interest rate hikes due to slowing inflation and mixed economic indicators,” said a bullion trader in Karachi. “Investors are turning back to gold to hedge against financial uncertainty.”

In recent weeks, gold prices have seen erratic movements, influenced by geopolitical tensions, fluctuations in the US dollar, and changes in inflation expectations. After falling to Rs335,200 per tola on May 15, prices have gradually climbed back as global economic sentiment remains fragile.

Despite Monday’s gain, analysts caution that gold markets are likely to remain volatile in the near term, depending on macroeconomic data releases and developments in international trade relations.

Meanwhile, silver prices remained flat in the local market. The per tola silver rate stood unchanged at Rs3,456, while the 10-gram silver price remained steady at Rs2,962.Retail jewellers noted that the price rise may dampen demand slightly among consumers, particularly in the wedding season, as many had hoped for continued relief after the recent price dip.

“Footfall in markets had picked up last week when gold dipped, but this sudden surge could push many buyers to postpone their purchases again,” a local jeweller in Karachi said.