Gold Crosses Historic Mark
Gold prices in Pakistan have reached an unprecedented level, surpassing PKR 400,000 per tola (11.66 grams) for the first time in history. According to the All Pakistan Gems and Jewellers Association, the price of one tola rose by PKR 5,900 in a single day, settling at PKR 403,600.
Similarly, the price of 10 grams of gold increased by PKR 5,058, reaching PKR 346,021.
This historic surge has alarmed both traders and ordinary buyers, making gold—once a popular form of savings and investment—increasingly unaffordable for many households.
Why Are Prices Rising?
Experts attribute the surge to several key factors:
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Depreciation of the Pakistani Rupee: The currency has lost significant value against the US dollar in recent months, pushing up the cost of imports.
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Soaring Inflation: Pakistan continues to battle double-digit inflation, which has eroded purchasing power.
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Global Market Trends: On the international front, gold prices also climbed, with the per-ounce rate jumping USD 59 to USD 3,818.
Because Pakistan depends heavily on imported gold, fluctuations in the global market have an immediate impact on local prices.
Impact on Local Jewellery Market
The record-breaking surge has shaken Pakistan’s jewellery industry. Traders report a sharp decline in demand as consumers shy away from buying gold ornaments.
Jewellers say that many families, particularly those planning weddings, are now opting for lighter sets or turning to artificial jewellery as a cheaper alternative. According to traders, footfall in major gold markets of Karachi, Lahore, and Islamabad has dropped by more than 40 percent over the past two months.
For middle-class households, gold—traditionally considered a safe investment—has become almost out of reach.
A Wider Economic Picture
Pakistan’s economic challenges are not limited to gold. The country has been struggling with a persistent balance of payments crisis, high borrowing costs, and pressure from the International Monetary Fund (IMF) to implement strict reforms.
With foreign exchange reserves still fragile, the rupee remains vulnerable to external shocks. Economists warn that if the currency continues to depreciate, gold prices could rise even further in the coming weeks.
Globally, investors are also flocking to gold as a safe-haven asset amid geopolitical tensions and concerns over slowing global growth. This has further fueled the upward trajectory of the precious metal.
What Lies Ahead?
Economic analysts caution that unless inflation is controlled and the rupee stabilises, gold could climb to new highs in the short term. However, price corrections are also possible, as seen recently when gold prices dropped sharply after hitting record highs in Pakistan. For now, the record prices are creating a ripple effect across sectors, from jewellery shops to household savings.
Consumers, already squeezed by rising food and fuel costs, face an even greater challenge as one of the most traditional forms of wealth preservation slips further out of reach.
