Gold prices in Pakistan recorded a sharp single-day surge on Friday, mirroring a powerful rally in international bullion markets. Both gold and silver posted significant gains, reinforcing the precious metals’ role as safe-haven assets amid heightened global market volatility.
The strong upward movement marked one of the largest daily increases in recent months, drawing attention from investors, traders, and consumers across the country.
Gold Prices in Pakistan Jump by Rs10,700 per Tola
According to figures released by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of gold surged by Rs10,700 per tola, settling at Rs454,262.
Similarly, the price of 10 grams of gold increased by Rs9,174, reaching Rs389,456 in the domestic market. The sharp rise followed a relatively modest increase a day earlier, when gold had closed at Rs443,562 per tola.
Market analysts described the move as a direct reaction to global price momentum rather than domestic demand fluctuations.
Global Gold Rally Drives Gold Prices in Pakistan
The surge in gold prices in Pakistan closely tracked developments in the international bullion market. Globally, gold prices jumped by $107 per ounce, climbing to $4,319, including a premium of $20.
International analysts attribute the rally to a combination of factors, including:
- Expectations of interest rate adjustments by major central banks
- Persistent geopolitical uncertainty
- Increased demand for safe-haven assets
- Weakening confidence in risk-heavy financial instruments
Historically, Pakistan’s gold market has shown a strong correlation with global bullion prices, and Friday’s rally reinforced that trend.
Silver Prices Also Register Strong Gains
Alongside gold, silver prices also moved higher in the local market. The price of silver rose by Rs232 per tola, closing at Rs6,684.
Silver’s performance reflected broader strength across precious metals, supported by both industrial demand expectations and investor interest as an alternative store of value.
Why Gold Prices in Pakistan Matter to Investors
Gold holds a unique position in Pakistan’s economy and culture. Beyond its traditional use in jewelry, gold is widely regarded as:
- A hedge against inflation
- A store of value during currency volatility
- A preferred investment during economic uncertainty
As a result, movements in gold prices in Pakistan are closely monitored not only by traders but also by households and long-term savers.
Financial experts note that sharp price increases often lead to:
- Reduced jewelry demand in the short term
- Increased investor interest in gold bars and coins
- Greater activity in the secondary gold market
Impact on Consumers and the Jewelry Sector
The sudden surge in gold prices has raised concerns among jewelers and consumers alike. Higher prices typically dampen retail demand, especially during wedding seasons and festive periods.
Jewelry traders report that while investment-driven buying may rise, consumer purchases for ornaments often slow when prices spike sharply in a short time.
Outlook for Gold Prices in Pakistan
Market watchers believe that gold prices in Pakistan may remain volatile in the near term, depending largely on international developments. Any further strengthening in global gold prices or depreciation in the Pakistani rupee could push local rates even higher.
However, some analysts caution that short-term corrections are also possible if global markets stabilize or if profit-taking emerges after the recent rally.
Key factors to watch include:
- Global inflation data
- Central bank policy signals
- Currency movements
- Geopolitical developments
Gold’s Long-Term Role in Pakistan’s Economy
Despite short-term fluctuations, gold continues to be viewed as a reliable long-term asset in Pakistan. In times of economic uncertainty, demand for physical gold traditionally strengthens, reinforcing its status as a financial safeguard for individuals and families.
The latest surge once again highlights how closely gold prices in Pakistan are tied to global market dynamics and investor sentiment worldwide.
Source: Business Recorder
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