Gold prices in Pakistan have crossed a historic threshold, exceeding Rs 500,000 per tola for the first time ever, as a global rally in precious metals continues to drive prices upward.
The surge reflects growing international demand for gold, often seen as a safe-haven asset during times of economic and geopolitical uncertainty. Both local and international markets witnessed sharp increases, highlighting the metal’s renewed appeal among investors and traders alike.
Gold Hits an All-Time High in Pakistan
According to the All Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of gold in Pakistan rose by Rs 12,700 per tola in a single day, pushing the rate to a record Rs 506,362 per tola.
Also Read: Gold Prices in Pakistan Jump to All-Time High After Sharp Daily Surge
This is the first time in the country’s history that gold has crossed the half-million-rupee mark, a milestone that reflects not only global trends but also local economic pressures, including currency depreciation and inflation.
Meanwhile, the price of 10 grams of gold increased by Rs 10,888, reaching Rs 444,123, further underlining the scale of the surge.
For many Pakistanis, gold is more than a luxury commodity. It is a trusted store of value, a hedge against inflation, and a central part of cultural traditions such as weddings and family savings.
Global Gold Market Fuels the Rally
The domestic price jump closely mirrors developments in the international market. On the same day, gold prices in the global market surged by $127 per ounce, reaching $4,840 per ounce.
Several factors are driving this rise:
Global economic uncertainty, including fears of recession in major economies
High inflation rates in the United States and Europe
Geopolitical tensions, particularly in Eastern Europe and the Middle East
Expectations of interest rate cuts, which often boost gold demand
Historically, gold prices tend to rise when confidence in traditional financial systems weakens. Investors then move toward assets perceived as more stable, with gold being one of the most popular choices.
Impact on Local Buyers and Investors
While the soaring price benefits investors who already hold gold, it poses challenges for ordinary consumers.
In Pakistan, gold is widely used for jewelry purchases, especially during wedding seasons. However, with prices at record levels, many families may now struggle to afford traditional gold ornaments.
Jewellers across major cities like Karachi, Lahore, and Islamabad have reported a slowdown in retail sales. Buyers are either postponing purchases or shifting to lighter-weight jewelry to manage costs.
At the same time, financial investors are showing renewed interest in gold bars and coins as a hedge against the weakening rupee and rising living costs.
Silver Prices Also Rise
Gold is not the only precious metal seeing gains. The price of silver per tola increased by Rs 64, bringing it to Rs 9,933 per tola.
Although silver is cheaper than gold, it is also widely used in jewelry and industrial applications. Its rise indicates broader strength in the precious metals market, not just a gold-specific phenomenon.
Why Gold Matters So Much in Pakistan
Pakistan is one of the world’s largest consumers of gold jewelry, especially in South Asia, where gold plays a deep cultural and economic role.
According to World Gold Council data, South Asia consistently accounts for a major share of global gold demand, driven by:
Wedding-related purchases
Long-term household savings
Lack of trust in paper assets during inflation
In Pakistan, limited investment options and recurring currency instability further strengthen gold’s appeal as a reliable store of value.
What Could Happen Next?
Market analysts say gold prices may remain volatile in the coming weeks.
If global inflation persists and geopolitical risks intensify, prices could climb even higher. However, any sudden strengthening of major currencies or aggressive interest rate hikes could slow the rally.
For now, the direction of gold prices will largely depend on:
US Federal Reserve policies
Global economic growth outlook
Movements in the US dollar
Political developments worldwide
A Historic Moment for Pakistan’s Gold Market
The crossing of the Rs 500,000 mark is more than just a numerical milestone. It reflects deeper economic realities affecting Pakistan and the world at large.
For investors, it reinforces gold’s reputation as a safe haven. For consumers, however, it serves as a reminder of rising financial pressures and shrinking purchasing power.
As markets remain uncertain, gold’s glitter appears set to shine even brighter — at least for now.
