Gold prices surge to Rs403,600 per tola

KARACHI: Gold prices soared to historic highs in Pakistan on Monday, crossing the Rs400,000 mark per tola for the first time in the country’s history, as geopolitical tensions and global uncertainty fuelled a rally in international bullion markets.

According to the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of 24-karat gold jumped by Rs5,900 per tola to settle at Rs403,600. In the 10-gram measure, gold rose by Rs5,058, reaching Rs346,021. These figures represent the highest rates ever recorded in Pakistan’s bullion market.

The surge was driven by developments in the international market, where gold prices increased by $59 to $3,818 per ounce, also setting an all-time high. Local bullion prices generally follow global trends, with adjustments that include a premium of around $20 per ounce to reflect duties, import costs, and domestic market dynamics.

Silver also registered sharp gains. The APSGJA reported that silver rose by Rs88 per tola to Rs4,792, while 10 grams increased by Rs76 to Rs4,108. With this, both gold and silver hit record levels in local and international markets.

Senior goldsmith Muhammad Shafi Khan attributed the historic surge to ongoing conflicts in Ukraine and Palestine, alongside shifts in US interest rate policy. “There were some hopes these wars would end, but so far there is no sign of resolution,” he said. “Political tensions, coupled with economic uncertainty, have pushed investors toward safe havens like gold.”

Khan explained that Pakistan’s bullion market closely tracks international prices, with domestic currency stability also playing a role. “Fortunately, the dollar rate is currently under control in Pakistan, but global dynamics are keeping gold on an upward trajectory,” he noted.

He added that jewellery demand has declined to “an alarming level” due to reduced purchasing power among consumers. However, investors are increasingly purchasing raw gold bars and coins, treating them as alternative assets similar to real estate or stocks.

Looking ahead, Khan said prices are likely to remain bullish, with international gold potentially surpassing $4,000 per ounce in the coming days. While a slight correction cannot be ruled out, he emphasised that the broader trend points firmly upwards amid ongoing geopolitical and economic instability.