Gold prices in Pakistan surged to an all-time high on Wednesday, with the price of 24-karat gold reaching Rs506,362 per tola, marking the highest level ever recorded in the local market. The sharp rise reflects growing volatility in global bullion markets and increasing demand from investors.
Global Bullion Rally Drives Local Prices
The historic increase in domestic gold prices followed a strong rally in international markets, where gold prices jumped by $127 per ounce to reach $4,840 per ounce. Analysts attribute this surge to heightened global economic uncertainty, currency fluctuations, and strong demand from investors seeking safe-haven assets.
Significant Daily Increase Recorded
According to the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of gold per tola rose by Rs12,700 in a single day. Similarly, the price of 10 grams of 24-karat gold climbed to Rs434,123, reflecting an increase of Rs10,888 compared to the previous trading session.
Wedding Season Demand Takes a Hit
The unprecedented rise in gold prices has significantly impacted jewellery buyers, particularly during Pakistan’s ongoing wedding season. Market representatives report that jewellery sales have dropped by 70 to 80 percent, as many consumers postpone purchases due to affordability concerns.
Investors Replace Traditional Buyers
Industry experts note a shift in market dynamics, with investors replacing traditional jewellery buyers. APSGJA President Qasim Shikarpuri stated that investors, both locally and globally, are increasingly selling US dollars to invest in gold, while central banks worldwide continue to expand their gold reserves.
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Market Rates Vary Across Cities
Despite the official rate, gold was being sold at slightly lower prices in local markets, ranging between Rs503,000 and Rs505,500 per tola, depending on demand and availability. Traders attribute this variation to competitive pricing and reduced consumer buying power.
Outlook for Gold Prices
With international gold prices remaining volatile and investor demand staying strong, analysts believe gold prices in Pakistan may continue to fluctuate in the coming days. However, sustained high prices could further suppress jewellery demand while strengthening gold’s appeal as an investment asset.
