Gold Prices in PAK Continue Record Breaking Rise Near Rs 420,000 Per Tola

Gold prices in Pakistan continued their record-breaking climb on Tuesday, driven by strong international demand for safe-haven assets and a global rally in precious metals. The relentless surge has brought the yellow metal closer than ever to the symbolic Rs. 420,000 per tola mark — a level that once seemed distant just weeks ago.

According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of 24-karat gold per tola rose by Rs. 1,500 during the day, settling at Rs. 416,778 — the highest in the country’s history. Meanwhile, the price of 10 grams of gold climbed by Rs. 1,286, reaching Rs. 357,319 by the close of trading.

Local Gold Market Hits Historic Levels

Tuesday’s increase follows an already dramatic surge on Monday, when gold prices jumped by Rs. 5,400 per tola in a single session to hit Rs. 415,278. The two-day rally represents one of the fastest upward movements recorded in Pakistan’s bullion market this year.

Traders and analysts attribute the rise primarily to record-breaking international gold prices, combined with rupee depreciation and geopolitical uncertainty, which have intensified investor demand for tangible assets.

“The continuous rise in global gold prices and concerns over political and economic volatility are driving Pakistani investors towards safe-haven assets,” said a senior jeweler in Karachi’s Sarafa Bazaar. “People are parking their money in gold rather than keeping it in bank deposits.”

Global Gold Prices Break New Records

The rally in Pakistan reflects similar trends in the international gold market, where prices continue to smash records amid weakening currencies and heightened global risk aversion.

According to the APGJSA, the international gold rate reached $3,955 per ounce on Tuesday, including a $20 premium, up $15 from the previous session. Spot gold briefly touched a new all-time high of $3,977.19 per ounce, before trading steady around $3,960 in the afternoon session.

Global investors have been flocking to gold as the US dollar weakens and bond yields decline, spurred by growing expectations that the US Federal Reserve will begin a new round of interest rate cuts later this year.

In addition, the ongoing US government shutdown, yen depreciation, and Middle East geopolitical tensions have all contributed to the upward momentum in the precious metal market.

Silver Prices Move in Opposite Direction

While gold continues to soar, silver prices in Pakistan saw a mild correction. The price of silver per tola fell by Rs. 20, closing at Rs. 4,929, according to the APGJSA. Despite the minor drop, silver prices remain close to their recent highs, supported by strong industrial demand and speculative trading in global markets.

In international trade, spot silver prices hovered around $49 per ounce, slightly down from the previous day’s highs but still up over 12% month-to-date — signaling ongoing investor interest in the metal as an alternative to gold.

Why Gold Is Rising So Rapidly

Several key macroeconomic factors are fueling the gold price rally — both globally and locally:

1. Safe-Haven Demand:
   As global equity markets remain volatile, investors are increasingly turning to gold as a reliable store of value.

2. Monetary Policy Shifts:
   Market speculation about upcoming Federal Reserve interest rate cuts has weakened the US dollar, boosting gold prices denominated in other currencies.

3. Inflation Concerns:
   Persistent inflation in major economies continues to erode purchasing power, making gold a preferred hedge against rising prices.

4. Local Currency Pressure:
   In Pakistan, the rupee’s relative softness has amplified the impact of global gold price increases, pushing local rates higher.

5. Global Supply Constraints:
   Mining disruptions and limited new exploration projects are restricting global gold supply, further tightening the market.

Investor Sentiment Turns Strongly Bullish

The investor sentiment in Pakistan’s gold market has turned decisively bullish, with many predicting that prices could breach the Rs. 420,000 per tola level within days if the international rally continues.

“The momentum is extraordinary,” said a Lahore-based market analyst. “Global uncertainty and expectations of US rate cuts are creating the perfect environment for gold to shine. Retail buyers and institutional investors alike are moving in.”

Jewelry demand, which had slowed earlier due to rising prices, has now stabilized as consumers view further increases as inevitable. In contrast, gold traders and bullion investors are capitalizing on the rally, seeing opportunities for short-term profits and long-term portfolio diversification.

Regional Context: South Asia Mirrors the Surge

Across South Asia, gold prices are setting new records. In India, the world’s second-largest gold consumer, prices climbed to ₹75,800 per 10 grams, while in Bangladesh, rates approached BDT 240,000 per bhori.

Regional analysts say Pakistan’s gold price movement is closely tied to these neighboring markets, given shared demand patterns, cultural preferences, and currency linkages.

Outlook: More Upside Likely, Analysts Warn of Volatility

Financial experts believe gold could remain bullish in the near term, particularly if US inflation data, Federal Reserve commentary, or geopolitical events continue to support safe-haven demand.

However, they also warn of potential short-term volatility if profit-taking occurs at record highs. “Corrections are natural after such sharp rallies,” said a commodity analyst. “But the long-term trend remains positive — gold remains an attractive hedge in a volatile global economy.”

Traders expect prices to remain within a short-term range of Rs. 414,000–Rs. 420,000 per tola, with possible breakouts depending on upcoming US economic indicators and the rupee’s stability.

Conclusion: Pakistan’s Gold Market Reflects Global Economic Shifts

The record-breaking rise in gold prices underscores both global financial uncertainty and local economic challenges. For Pakistani investors, the metal’s ascent provides a hedge against inflation and currency depreciation — but also highlights the underlying instability in global markets that continues to drive the demand for safe-haven assets.