Gold prices surge by Rs4,300 per tola amid global market upswing

KARACHI: Gold prices rose sharply in the local market on Thursday as global bullion rates continued their upward momentum.

According to the All Pakistan Sarafa Gems and Jewellers Association, the price of gold increased by Rs4,300 per tola, bringing the domestic rate to Rs358,400 per tola. Likewise, the 10-gram gold price rose by Rs3,687, reaching Rs307,270.

The rise in local rates followed a significant gain in international markets, where gold climbed by $43 per ounce, reaching $3,400 per ounce. Gold prices in Pakistan are generally adjusted with a $20 premium over international rates to reflect local market conditions and costs, including currency exchange and import charges.

Bullion analysts attributed the price surge to growing investor interest in gold amid lingering concerns about inflation, slow global economic recovery and fluctuating interest rate expectations in major economies.

“Gold continues to be seen as a safe-haven investment, particularly in times of market volatility and macroeconomic uncertainty,” said a senior trader. Meanwhile, silver prices also saw a sharp rise, climbing by Rs159 per tola to settle at Rs3,745, while the 10-gram silver rate increased by Rs136, closing at Rs3,210.

Jewellers noted that the continued rise in precious metal prices may impact local demand, particularly among retail buyers, but investment interest remains strong. With wedding season activity underway, market watchers expect price movements to stay volatile in the coming weeks depending on global trends.