Pakistan is witnessing an unprecedented surge in gold and silver prices, leaving both investors and jewelry buyers grappling with the sudden financial impact. Analysts say the trend reflects broader economic uncertainties and currency fluctuations affecting the country.
Gold Prices Reach Historic Highs
On Monday, marking the start of the business week, gold prices in Pakistan hit record high, climbing sharply to levels previously unseen in the country’s history. According to the All Pakistan Sarafa Association, the price of 24-carat pure gold rose by PKR 5,400 per tola, reaching PKR 415,278 per tola. Similarly, 10 grams of gold became PKR 4,629 more expensive, trading at PKR 356,033.
This surge is not confined to Pakistan alone. Internationally, gold prices have also been on the rise. In global markets, gold traded at $3,940 per ounce after a $54 increase. The weakening Pakistani rupee has amplified these international price gains in local markets, making gold even less affordable for domestic buyers.
Silver Prices Also Hit Record Levels
Silver has mirrored gold’s upward trajectory. Latest data shows the price of silver per tola reaching PKR 4,949, setting a new historical record. Experts attribute this rise to several factors: increasing inflation, political instability, and general economic uncertainty.
“In times of economic unpredictability, investors often turn to safe-haven assets like gold and silver,” said one market analyst. “Demand surges for these metals as people seek to protect their savings.”
Factors Driving the Surge
Several interlinked factors are driving the price spikes in Pakistan:
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Currency Depreciation: The Pakistani rupee has continued to weaken against the US dollar, directly influencing the cost of imported gold.
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Global Market Trends: Rising international gold prices are reflected domestically, as Pakistan relies on imports for precious metals.
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Inflation and Economic Uncertainty: Persistent inflation erodes purchasing power, prompting people to invest in tangible assets like gold and silver.
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Political Instability: Heightened political tensions often drive investors toward safer, non-volatile investment options.
These factors combined have created a perfect storm for precious metal prices to soar, adding pressure on consumers and investors alike.
Expert Advice for Investors
Financial analysts warn that if the current trend continues, gold and silver prices may climb further in the coming weeks. They advise investors to act cautiously.
“Buying or selling precious metals should be a well-considered decision, based on complete market analysis,” said a senior market expert. “Hasty transactions could result in significant financial losses.”
Investors are particularly advised to monitor both global and domestic market conditions, exchange rate fluctuations, and inflation trends before making decisions.
Impact on Consumers
The surge in gold and silver prices has a direct impact on ordinary consumers. Jewelry buyers, especially those purchasing for weddings or festivals, are facing increased costs. Small-scale investors, who traditionally rely on gold and silver as secure investment avenues, are also feeling the strain.
In addition, some analysts warn that continued price hikes could slow down local jewelry markets, as affordability becomes a major concern. Retailers may pass on higher costs to consumers, potentially reducing overall sales.
Looking Ahead
As Pakistan grapples with economic instability, experts believe the demand for safe-haven assets will remain strong. Gold and silver are likely to retain their appeal as secure investment options, but their affordability will remain a key challenge for ordinary citizens.
While no immediate policy interventions have been announced, investors and consumers alike are closely monitoring the situation. The next few weeks could determine whether the current surge stabilizes or continues, potentially reshaping the precious metals market in Pakistan.
