Karachi – Gold prices in Pakistan have surged again, continuing a recent upward trend. According to the All Pakistan Gems and Jewellery Association (APGJA), one tola (11.66 grams) of gold rose by PKR 500. It now costs PKR 473,362 across the country.
Also Read: Gold Prices Hit Record Highs in Pakistan and Global Markets
This increase reflects ongoing volatility in both global and domestic markets. Investors and traders are reacting to international cues and local economic conditions.
Rising Prices for Smaller Quantities
The APGJA reported that 10 grams of gold also saw a price rise. It increased by PKR 429 to reach PKR 405,831.
Smaller gold quantities are popular among individual investors and households. They are often used as gifts during weddings and festivals. Gold is considered a safe-haven investment in Pakistan. Financial instability and currency fluctuations often push people toward precious metals.
Global Gold Market Trends
International gold prices also increased. The global rate rose by $5, reaching $4,510 per ounce.
Analysts say this is due to currency changes, geopolitical tensions, and shifts in central bank policies.
Global prices influence Pakistan’s market. However, local factors like import duties, taxes, and the rupee’s exchange rate also affect domestic prices.
Factors Driving Domestic Price Increase
Several factors are driving gold prices higher in Pakistan.
First, the Pakistani rupee has weakened against the US dollar. This makes imported gold more expensive. Second, domestic demand remains strong, especially in Karachi, Lahore, and Islamabad.
Additionally, inflationary pressures encourage investors to buy gold as a safe store of value. Gold serves as a hedge against currency depreciation and rising prices.
Historical Context
Gold prices in Pakistan have trended upward over the past year. In December 2024, a tola cost around PKR 465,000. This shows a rise of over PKR 8,000 in just one month. Analysts believe the trend may continue if currency and global market pressures persist.
Implications for Consumers and Investors
The rise affects both consumers and investors. For households, jewelry costs are increasing. This could impact wedding and festival spending. For investors, rising gold prices offer a chance to safeguard wealth.
Financial experts urge caution. Gold is safe long-term, but short-term price swings remain unpredictable. Observing local economic indicators and global trends is essential for smart decisions.
Conclusion
Gold prices in Pakistan continue to rise. Market watchers and consumers are closely following both local and international developments. While gold remains a preferred investment and cultural asset, rising costs highlight broader economic challenges in Pakistan.
