Gold prices surged across Pakistan once again on Tuesday, extending a strong upward trend that has dominated the market in recent weeks. The latest increase has affected buyers nationwide, as both global developments and domestic economic conditions continue to push precious metal prices higher.
Data released by the All Pakistan Gems and Jewellers Association (APGJA) shows that gold prices rose by thousands of rupees in a single day. The increase has reinforced gold’s position as a preferred store of value during uncertain economic times, despite weakening consumer demand for jewellery.
Sharp Rise in Domestic Gold Rates
According to the APGJA, the price of gold increased by Rs3,400 per tola across the country. After this jump, the price of one tola reached Rs469,562, setting another record high in the local bullion market.
The association also reported a notable rise in the price of 10 grams of gold. It climbed by Rs2,915 to reach Rs402,573. These rates apply to 24-karat gold, which serves as the standard reference for pricing in Pakistan.
Also Read: Gold Prices Surge in Pakistan Amid Global Market Fluctuations
Jewellers in major urban centres, including Karachi, Lahore, and Islamabad, implemented the revised prices immediately. Traders confirmed that wholesale and retail markets reflected the updated rates without delay.
Global Markets Fuel Local Price Surge
International market trends played a central role in driving local prices upward. In the global bullion market, gold gained $34 per ounce and reached $4,472 per ounce.
Several factors continue to support rising global gold prices. Investors have increased their exposure to gold due to ongoing geopolitical tensions, concerns about global economic growth, and expectations around future interest rate decisions by major central banks. Gold traditionally attracts buyers during periods of uncertainty, as it offers protection against inflation and financial instability.
The US dollar’s movement has also influenced gold prices. When the dollar weakens, gold becomes more attractive to investors using other currencies. This dynamic often leads to price increases in international markets, which directly affect countries like Pakistan.
Currency Pressure Adds to Local Costs
Pakistan’s reliance on imported gold makes domestic prices highly sensitive to exchange rate fluctuations. When the rupee loses value against the US dollar, the cost of importing gold rises sharply. As a result, even modest gains in global prices can translate into steep increases at home.
Economic analysts note that persistent inflation and high import costs have strengthened gold’s appeal as a hedge. Many households now view gold as a safer option compared to volatile financial instruments.
Impact on Consumers and Jewellery Trade
The continued rise in gold prices has reduced purchasing power for many consumers. Families planning weddings or traditional celebrations now face significantly higher costs. As a result, many buyers have postponed purchases or shifted towards lighter jewellery designs.
Jewellers report slower retail sales despite steady interest from investors. While bullion and gold bar purchases remain relatively strong, jewellery demand has softened due to affordability concerns. Traders say footfall in markets has declined compared to earlier periods.
Broader Economic Backdrop
Over the past year, gold prices in Pakistan have followed a largely upward trajectory. High inflation, rising energy costs, and uncertainty in financial markets have all contributed to this trend. For many households, gold continues to serve as a long-term savings option rather than a luxury item.
Experts believe that this behaviour reflects broader concerns about economic stability. As confidence in traditional savings methods weakens, demand for tangible assets like gold continues to grow.
What Lies Ahead for Gold Prices
Market watchers expect gold prices to remain volatile in the coming weeks. Future movements will depend on global inflation data, central bank policy decisions, and geopolitical developments.
For now, strong international prices and domestic economic pressures suggest that gold will remain expensive in Pakistan. Consumers and investors alike are closely watching the market, aware that any shift in global sentiment could quickly change the direction of prices.
