Gold Prices Surge Amid Global Economic Uncertainty

Gold prices in Pakistan surged on Friday, continuing a trend influenced by global economic uncertainty. After a minor dip the previous day, gold prices in Pakistan bounced back strongly, with the per tola rate increasing by Rs2,500 to settle at Rs357,600. This sharp rise reflects a renewed interest in precious metals amid inflation concerns and currency fluctuations worldwide.

Gold Rebounds After Brief Dip

According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of 10-gram gold climbed by Rs2,143 to reach Rs306,584. This followed a Rs900 drop on Thursday, when gold was priced at Rs355,100 per tola. The rebound indicates heightened demand and increased investor activity, reversing the previous day’s bearish sentiment.

Global Market Pushes Local Prices Higher

In the international market, gold rose by $25, reaching $3,351 per ounce. A $20 premium was also added, indicating strong buying interest globally. This international momentum played a key role in driving domestic rates upward, as Pakistan’s gold market closely mirrors global price movements.

Silver Also Rises

Silver followed the same upward trend. The price per tola of silver increased by Rs48, now standing at Rs4,012. The 10-gram rate also went up proportionately, underscoring growing demand across the precious metals spectrum.

Read: Profit-Taking Caps Pauses PSX After Rally

Economic Pressures Fuel Safe-Haven Buying

Analysts attribute the surge in gold and silver prices to a range of macroeconomic factors. Rising global inflation, fluctuating currency values, and concerns about economic slowdowns in key markets have prompted investors to turn to gold and silver as safer assets. These metals are historically viewed as hedges against economic instability.

In Pakistan, the rupee’s relative volatility and global cues have further strengthened this trend. With the local currency showing signs of weakness and inflationary pressure mounting, investors are increasingly turning to physical assets .

Market Sentiment Remains Strong

Local jewellers and traders noted increased foot traffic and buying interest, particularly from those looking to invest in gold amid economic uncertainty. “We’ve seen a spike in inquiries and purchases,” said a Karachi-based trader. “People are worried about inflation and find a safer place to park their money.”

APGJSA’s Role and Market Monitoring

The APGJSA continues to monitor both domestic and international trends closely. The body ensures daily price adjustments reflect real-time market conditions, allowing for accurate pricing across Pakistan’s gold markets. Traders and investors rely on these updates to make informed decisions.

The Association also cautions buyers to remain aware of potential market volatility in the coming weeks, especially as global central banks make decisions on interest rates and monetary policy. These developments could lead to more fluctuations in precious metal prices.

Broader Implications for the Economy

The rising cost of gold could have broader implications for the Pakistani economy. Higher gold prices may increase the cost of jewellery and other related products, affecting both consumers and retailers. However, for investors and exporters, the uptrend provides potential gains.

Financial advisors are now encouraging clients to consider diversifying their portfolios by adding a small percentage of precious metals. “Gold isn’t just for adornment anymore,” noted one analyst. “In times like these, it becomes an essential asset class.”

What Lies Ahead

If global inflation remains unchecked and economic uncertainty continues, prices in Pakistan may rise further. While short-term corrections are possible, the overall trajectory appears bullish.

Investors and market watchers are advised to stay informed and consider precious metals as a part of their strategy to navigate turbulent economic waters. As trends shift globally, the local market will likely follow suit, making daily monitoring crucial for anyone involved in the trade or investment of gold