Gold prices in Pakistan have risen once again, continuing a trend that has worried consumers and investors alike. On Monday, the price of gold increased sharply, with the rate per tola climbing by Rs1,300. As a result, gold has reached a new all-time high in the local market, reflecting both international pressures and domestic economic challenges.
Also Read: Gold Prices Surge Across Pakistan as Global Rates Climb
According to the latest data released by the All Pakistan Sarafa Gems and Jewellers Association, the price of one tola of gold now stands at Rs456,162. This steady rise has created uncertainty in the bullion market, while ordinary buyers are increasingly finding it difficult to afford gold jewellery.
Record Increase in Local Gold Rates
The recent increase marks another significant jump in gold prices within a short period. Over the past few months, gold has shown strong upward momentum in Pakistan. Market observers note that prices have risen by tens of thousands of rupees per tola during the current year alone.
Alongside the per tola price, the rate of 10 grams of gold has also increased noticeably. After a rise of Rs1,115, the price of 10 grams now stands at Rs391,085. Jewellers say such rapid increases make it hard for buyers to plan purchases, especially for weddings and family events.
As a result, jewellery sales have declined in many cities. Traders report that footfall in major gold markets has reduced, as customers either delay purchases or opt for lighter designs.
Global Market Trends Drive Prices Higher
Meanwhile, international gold markets have also witnessed an upward trend. According to global trading data, the price of gold rose by $13 per ounce, reaching $4,338. Analysts link this increase to several global factors.
Persistent inflation in major economies has weakened purchasing power worldwide. In addition, ongoing geopolitical tensions and slowing economic growth have increased uncertainty. Consequently, investors are turning to gold as a safe-haven asset during unstable times.
Historically, gold prices tend to rise during periods of global uncertainty. During previous economic crises, including the 2008 financial downturn, gold saw similar upward trends. Current conditions appear to be reinforcing that pattern.
Impact of Currency Fluctuations in Pakistan
In Pakistan, currency volatility has played a major role in pushing gold prices higher. The rupee has faced repeated pressure against major foreign currencies, particularly the US dollar. Since gold is traded internationally in dollars, any depreciation of the rupee directly raises local prices.
Sarafa market representatives say this combination of global price increases and local currency weakness has amplified the impact on domestic rates. Even when global prices rise modestly, the effect becomes more pronounced in Pakistan.
Moreover, import costs and higher taxes on precious metals have also contributed to elevated prices in recent years.
Buyers Feel the Pressure During Wedding Season
The timing of the price surge has added to public concern. The wedding season is approaching, traditionally a period of high demand for gold jewellery. Families often purchase gold as gifts and investments during weddings.
However, traders say many customers are now scaling back their purchases. Some are choosing artificial jewellery, while others are postponing buying gold altogether. For middle-income households, owning gold is becoming increasingly difficult.
Outlook: More Increases Possible
Looking ahead, analysts warn that further increases cannot be ruled out. If global gold prices continue to rise and currency pressures persist, local rates may climb even higher in the coming days.
Experts advise consumers to remain cautious and stay informed about market trends. While gold remains a popular store of value, its growing cost is reshaping buying habits across the country.
For now, gold’s record-breaking rally shows no clear signs of slowing, leaving both buyers and traders navigating an increasingly challenging market.
