Gold Prices Reach New Peaks in Pakistan
Gold prices in Pakistan have witnessed another sharp rise, marking one of the steepest increases in recent weeks. According to the All Pakistan Gems and Jewellers Association, the price of gold surged by 4,100 Pakistani rupees per tola (11.66 grams) on Tuesday.
With this latest increase, the price of gold in the domestic market has now climbed to 388,100 rupees per tola, placing it among the highest levels recorded in the country’s history.
Similarly, the price of 10 grams of gold rose by 3,514 rupees, pushing the new rate to 332,733 rupees. Traders note that such rapid increases are rare but reflect both local currency weakness and global market trends.
Impact of Global Market Movements
The surge in domestic prices mirrors international trends. In the global bullion market, gold gained 41 US dollars, reaching 3,654 dollars per ounce.
Analysts say that global investors are increasingly turning to gold amid persistent concerns about inflation, slowing economic growth, and heightened geopolitical risks. Traditionally considered a safe-haven asset, gold tends to rise in value during times of uncertainty.
“The global environment is driving demand for gold as a hedge against volatility,” one Karachi-based bullion trader explained. “These movements are directly impacting Pakistan’s domestic market.”
Currency Depreciation Adds to Pressure
Pakistan’s gold market is heavily influenced by the performance of the local currency. With the Pakistani rupee continuing to face depreciation pressures against the US dollar, domestic gold prices often climb higher than global averages.
Economists point out that this combination — a weaker rupee and rising international gold prices — creates a double impact on the local market. As a result, jewellery traders, investors, and ordinary buyers are forced to deal with escalating costs.
Gold as a Hedge Against Inflation
Rising gold prices are also linked to inflationary pressures within Pakistan. With consumer prices already weighing heavily on households, many view gold as a reliable store of value.
For middle-class families, however, the soaring prices have placed traditional purchases, such as wedding jewellery, beyond reach. Industry insiders note that demand for ornamental gold has fallen sharply, while investment demand remains steady.
“People are buying smaller quantities, mostly in the form of coins or bars, rather than heavy jewellery sets,” said a jeweller in Lahore. “It reflects both economic stress and the enduring trust in gold as a safeguard.”
Historical Context
Pakistan has seen record-breaking gold prices in recent years. In 2023, gold crossed the 400,000-rupee mark per tola for the first time, largely due to currency depreciation and inflationary shocks.
The current rise, though slightly below that peak, signals renewed pressure on both consumers and the broader economy. Market observers warn that if global uncertainty persists, local prices could climb even further in the months ahead.
Outlook
Looking ahead, experts predict continued volatility in gold markets. Any shift in US Federal Reserve policy, geopolitical conflicts, or energy price swings could further influence global bullion prices.
For Pakistan, much depends on the rupee’s stability and the country’s broader economic outlook. As inflation remains elevated and the currency under strain, gold is likely to remain both a burden for households and a safe haven for investors.
