Gold prices surged sharply across Pakistan on Saturday, reflecting rising international rates and persistent economic uncertainty at home. The latest increase has pushed local gold prices to record highs, reinforcing gold’s position as a preferred store of value for investors and households alike.
According to market officials, the price hike marks one of the most significant daily increases in recent weeks, adding further pressure on consumers already facing high inflation.
Steep Rise in Domestic Gold Prices
The All Pakistan Gems and Jewellers Association (APGJA) announced that the price of gold per tola increased by Rs2,600, taking it to Rs454,862 across the country. Jewellers in major markets, including Karachi, Lahore, Islamabad, and Peshawar, updated their rates soon after the announcement.
In addition, the price of 10 grams of gold rose by Rs2,229. As a result, 10 grams of gold now sell for Rs389,970. These prices apply to 24-karat gold, which serves as the standard for Pakistan’s bullion trade.
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Gold dealers say the sharp increase has reduced walk-in customers. However, serious investors continue to buy, viewing the metal as a safer option during volatile economic conditions.
Global Gold Rally Drives Local Markets
The domestic surge closely follows a strong rally in international markets. On the global bullion exchange, gold prices rose by $26 per ounce, reaching $4,325 per ounce.
Several factors continue to support international gold prices. Ongoing geopolitical tensions, uncertainty around global economic growth, and expectations of future interest rate cuts by major central banks have strengthened demand. In addition, movements in the US dollar play a key role, as gold often rises when the dollar weakens.
Since Pakistan relies on imported gold, any increase in global prices quickly affects local rates. Traders say international trends remain the primary driver of domestic price movements.
Role of Currency Pressure and Inflation
Pakistan’s fragile currency situation has further amplified the rise in gold prices. When the Pakistani rupee loses value against the US dollar, the cost of importing gold increases immediately.
At the same time, inflation continues to erode purchasing power. Official data shows that inflation has remained in double digits for extended periods over the past year. In such an environment, many savers turn to gold to protect their wealth from devaluation.
Economists note that gold traditionally performs well during times of economic stress. In Pakistan, this trend appears even stronger due to limited alternative investment options for small savers.
Consumer Behavior and Market Response
Despite record-high prices, demand has not collapsed. The ongoing wedding season continues to support some level of retail buying. However, many customers now prefer lighter jewellery designs to manage costs.
Jewellers report that families increasingly delay purchases, hoping for a price correction. At the same time, demand for gold bars and coins has increased. This shift highlights a growing preference for investment-focused buying rather than decorative jewellery.
Gold remains deeply embedded in Pakistan’s cultural and financial traditions. Families often consider it both a long-term asset and a form of financial security.
Comparison With Recent Price Trends
Over the past year, gold prices in Pakistan have climbed steadily, breaking multiple records. Earlier this year, prices crossed the Rs400,000 per tola threshold for the first time. Since then, repeated increases have followed global rallies and currency depreciation.
Market analysts say the overall trend still points upward. While short-term corrections may occur, sustained declines appear unlikely without major improvements in global stability and domestic economic conditions.
What Lies Ahead for Gold Prices
Looking forward, analysts expect continued volatility in gold prices. Investors worldwide closely monitor economic data from the United States, Europe, and China. Any changes in interest rate policies by major central banks could trigger further price swings.
Within Pakistan, currency stability and inflation control will play a decisive role. If the rupee remains under pressure, gold prices may continue to rise even if international rates pause.
For now, experts advise consumers and investors to track market developments carefully. Gold continues to act as both a safe haven and a clear signal of broader economic trends.
