Gold prices in Pakistan have reached a historic high, continuing a sharp upward trend that has unsettled buyers and investors alike. On Thursday, the price of 10 grams of gold crossed the Rs400,000 threshold for the first time in the country’s history, reflecting both domestic market pressures and a strong rally in international bullion prices.
Also Read: Gold Prices Hit Record Highs in Pakistan and Global Markets
According to market data released by the All Pakistan Gems and Jewellers Association (APGJA), the price surge was significant and came within a single trading session. The latest increase follows several days of consistent gains, highlighting growing volatility in the precious metals market.
Sharp Increase in Local Gold Rates
The APGJA reported that the price of one tola of gold rose by Rs8,500, pushing it to Rs470,862. This represents one of the steepest single-day increases recorded in recent months.
Similarly, the price of 10 grams of gold increased by Rs7,288, reaching Rs403,688. This marks a historic moment for Pakistan’s gold market, as 10 grams of gold has never before traded above the Rs400,000 level.
Jewellers in Karachi, Lahore, and other major cities confirmed strong price movements throughout the day. Many said customers appeared cautious, with buying activity slowing as prices climbed rapidly.
International Gold Prices Drive Local Surge
The surge in domestic prices closely mirrors developments in the global bullion market. Internationally, gold prices rose by $85 per ounce, reaching $4,485 per ounce.
Analysts say global uncertainty continues to fuel demand for gold as a safe-haven asset. Factors include persistent inflation concerns, geopolitical tensions, and expectations around interest rate policies in major economies.
Because Pakistan’s gold prices are closely linked to international rates and the US dollar exchange rate, any movement in global markets quickly impacts local prices. A weaker Pakistani rupee further amplifies the effect for domestic buyers.
Prices Were Already Rising a Day Earlier
This latest increase comes just one day after another major jump in gold prices. On the previous trading day, the price of one tola of gold had already risen by Rs6,200.
Market observers note that back-to-back increases of this scale are unusual. They indicate heightened uncertainty and strong speculative activity in both local and global markets.
Over the past year, gold prices in Pakistan have climbed sharply. This reflects not only global trends but also domestic economic pressures, including inflation and currency depreciation.
Impact on Consumers and the Jewellery Trade
The record-high prices have had a mixed impact on consumers and jewellers. While investors holding gold have seen the value of their assets rise, many ordinary buyers have been priced out of the market.
Jewellers report that sales of gold jewellery, especially for weddings and social events, have slowed. Customers are either delaying purchases or opting for lighter designs to manage costs.
However, some investors continue to buy gold as a hedge against inflation and economic uncertainty. In Pakistan, gold remains a popular store of value, particularly during periods of financial instability.
Outlook Remains Uncertain
Experts say the near-term outlook for gold prices remains uncertain. Much will depend on global economic indicators, central bank decisions, and geopolitical developments.
If international prices remain elevated and the rupee continues to face pressure, local gold rates could stay high or rise further. However, any easing in global tensions or strengthening of the local currency may bring temporary relief.
For now, Pakistan’s gold market stands at a historic juncture, with prices at record levels and buyers watching developments closely.
