Gold Prices in PAK Break Records, Racing Toward Rs. 450,000 Mark

Gold prices in Pakistan continued their record-breaking streak on Wednesday, surging to new all-time highs in line with global market trends. The rally has been fueled by mounting geopolitical tensions, global inflationary pressures, and a sharp rise in safe-haven demand as investors seek refuge from uncertainty in traditional assets like gold.

According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of gold per tola soared by Rs. 8,400 in a single day, reaching a new historic level of Rs. 425,178. Meanwhile, the price of 10 grams of gold rose by Rs. 7,202, bringing the rate to Rs. 364,521.

Global Gold Rally Driving Local Market Surge

The domestic surge mirrors a significant rally in international gold prices. The APGJSA reported the global gold rate at $4,039 per ounce, including a $20 premium, reflecting an $84 increase during the trading day. Spot gold prices in global markets touched an all-time high of $4,040 per ounce, extending an already strong multi-week uptrend.

International analysts attribute the global rally to a combination of factors, including growing fears of a global economic slowdown, geopolitical risks in the Middle East and Eastern Europe, and speculation surrounding the U.S. Federal Reserve’s potential interest rate cuts later this year.

A weakening U.S. dollar and falling Treasury yields have further boosted gold’s appeal, encouraging both institutional and retail investors to increase their holdings in the precious metal.

“Gold is once again asserting itself as the ultimate safe-haven asset,” said an APGJSA representative. “The combination of uncertainty in global equity markets and expectations of looser monetary policy has pushed investors strongly toward bullion.”

Investor Sentiment and Market Reactions

Local traders report heightened activity in major bullion markets across Karachi, Lahore, Islamabad, and Peshawar, with gold dealers noting a strong wave of buying from both investors and jewellers.

“The market has become extremely volatile, but investors are confident that gold prices will continue to climb amid global economic challenges,” said a senior trader at Karachi’s Sarafa Bazaar.

This upward momentum is being mirrored globally, with international gold ETFs reporting significant inflows in recent weeks. Analysts note that the $4,000 mark, once considered a psychological barrier, has now become a potential launching pad for further gains toward $4,100 per ounce if current macroeconomic conditions persist.

Impact on Local Jewellery and Investment Demand

The continued rise in gold prices is beginning to affect jewellery demand in Pakistan, as many retailers report lower customer footfall for wedding and ornamental purchases. However, investment-grade bullion sales have remained robust.

Jewellers explain that investors view gold as a hedge against currency depreciation, particularly amid concerns about inflation and the rupee’s performance against the U.S. dollar.

The local market has also seen increased demand for gold bars and sovereign coins, as more people look for tangible, safe-haven assets that retain long-term value.

Silver Prices Edge Higher

While gold dominated market headlines, silver also gained ground in the local market. According to the APGJSA, the price of silver per tola rose by Rs. 55, settling at Rs. 4,984, while 10 grams of silver were priced at Rs. 4,275.

Analysts suggest that silver’s performance could strengthen further as industrial demand picks up alongside its status as a cheaper alternative to gold for small investors. The gold-to-silver ratio now stands near historic highs, underscoring the potential for silver to catch up if industrial and retail investment demand continues to expand.

Macroeconomic Outlook and Future Projections

Financial experts predict that gold could continue to appreciate through the final quarter of 2025, especially if the Federal Reserve signals rate cuts during upcoming policy meetings. Historically, lower interest rates weaken the U.S. dollar and enhance gold’s attractiveness.

Domestically, the Pakistani rupee’s depreciation against the dollar and rising inflation have also been key drivers of record-high bullion prices. Economic analysts believe that unless major central banks adopt a tighter stance, gold may remain on an upward trajectory, potentially breaching Rs. 440,000 to Rs. 450,000 per tola in the coming weeks.

What It Means for Pakistani Investors

For Pakistani households, gold remains a traditional symbol of wealth and financial security. The consistent rise in gold prices over the past year has reaffirmed its status as a safe-haven investment amid fluctuating equity and real-estate markets.

With geopolitical tensions and macroeconomic uncertainty unlikely to ease soon, investors are expected to maintain strong positions in bullion. Gold’s historical reputation as an inflation hedge makes it particularly appealing in Pakistan’s current economic environment.

Conclusion

Gold’s historic surge toward the Rs. 450,000 mark underscores not only Pakistan’s integration with global market movements but also the persistent appeal of precious metals in times of instability.