Gold prices surge by Rs4,000 per tola

KARACHI: Gold prices climbed sharply by Rs4,000 per tola in the local market on Thursday, driven by a rebound in international rates as global investors returned to the yellow metal amid economic uncertainties.

According to the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), local gold prices reached Rs356,900 per tola, up from Rs352,900 a day earlier. The price of 10-gram gold also surged by Rs3,430, bringing it to Rs305,984. In the international market, gold prices rose by $30, closing at $3,375 per ounce. The rally was attributed to renewed concerns over inflationary pressures in major economies and weak macroeconomic indicators from the US and Europe. As is typical, local gold prices in Pakistan were adjusted with a $20 premium over the global market price.

Traders noted increased demand in the local bullion market following the global uptick. “Whenever there is uncertainty in the global economic outlook, investors move towards gold as a safe-haven asset,” said a jeweller. “The international momentum directly influenced local buying activity today.”

Despite the rise in gold, silver prices remained unchanged. The APSGJA reported that silver held steady at Rs3,745 per tola, while the 10-gram silver rate also remained flat at Rs3,210.

Market watchers expect further fluctuations in gold prices in the coming days, depending on the global economic data and any updates regarding monetary policy decisions by major central banks.