Gold prices in Pakistan have climbed to a historic peak, extending a rally that has unsettled buyers and delighted investors. The latest increase came on Tuesday, when the price of gold jumped by 4,300 Pakistani rupees per tola, according to the All Pakistan Gems and Jewellers Association (APGJA). As a result, the price of one tola of gold reached 493,662 rupees, the highest level ever recorded in the domestic market.
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The surge continues a pattern of rapid increases seen over recent weeks. Moreover, it reflects growing volatility in global precious metals markets. For many households, however, the rising cost has made gold increasingly unaffordable.
Record-Breaking Rise in Local Prices
The APGJA said the sharp daily rise pushed gold well beyond previous milestones. At the same time, the price of 10 grams of gold increased by 3,686 rupees, reaching 423,000 rupees. These figures underline the speed of the current rally.
Traders in Karachi, Lahore and Islamabad reported heavy interest from investors. Yet retail buyers appeared cautious. Many postponed purchases, hoping for a correction. Prices are moving too fast for ordinary customers, one jeweller said. People are watching and waiting.
In Pakistan, gold is both a cultural symbol and a financial asset. Families often buy it for weddings and savings. Therefore, any sudden rise directly affects household budgets.
Global Market Influence
The domestic rally mirrors developments in the international market. According to the association, the global price of gold reached 4,713 dollars per ounce. This unusually high level reflects strong demand and ongoing economic uncertainty.
Across the world, investors are turning to gold as a safe haven. Rising geopolitical tensions, fears of inflation, and expectations of slower economic growth have all boosted interest in the metal. In addition, central banks in several countries have increased their gold reserves, supporting prices further.
Pakistan’s market is closely linked to global trends. When international prices rise, local rates often follow within hours. Currency movements also play a role. A weaker rupee makes imported gold more expensive, even if dollar prices remain steady.
Impact on Consumers and Jewelers
The sudden jump has had mixed effects on the local industry. On one hand, traders holding old stock have seen the value of their inventories soar. On the other hand, demand from ordinary customers has slowed.
Wedding season usually brings strong sales. However, many families are now choosing lighter jewellery or delaying purchases. Some are shifting to artificial ornaments instead. Gold is becoming a luxury, said a shop owner in Rawalpindi. People still want it, but they buy less.
Investors, meanwhile, are showing renewed interest. In uncertain times, gold remains a trusted store of value. Small investors often prefer physical gold to stocks or property. As a result, bullion trading has picked up in major cities.
Silver Prices Also Rise
The rally has not been limited to gold. Silver prices have also increased sharply. The price of one tola of silver reached 9,869 rupees, according to the latest data.
Although silver attracts less attention, it remains important for small investors and artisans. Higher prices could affect demand in the jewellery and handicraft sectors. Still, traders say silver remains more affordable than gold for most buyers.
Outlook and Market Risks
Analysts warn that the market may remain volatile in the coming weeks. Much will depend on global economic signals and currency movements. If international prices continue to rise, local rates could climb even higher.
However, sudden corrections are also possible. Gold markets are known for sharp swings. Any easing of geopolitical tensions or stronger economic data could reduce demand for safe-haven assets.
For now, consumers face difficult choices. Investors, meanwhile, are watching closely for the next move. As one trader noted, Gold is shining again, but the risks are also growing.
With prices at record levels, Pakistan’s gold market stands at a critical moment. Whether the rally continues or cools will shape buying patterns in the months ahead.
