Gold price in Pakistan surges amid global market rally

The gold price in Pakistan rose sharply on Thursday, tracking gains in the international market. The price of gold per tola climbed by Rs2,000, reaching Rs357,200. This sudden increase reflects both global market momentum and the continued role of gold as a safe-haven asset in uncertain economic times.

Local market registers sharp rise

According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the domestic market reacted quickly to global price changes. Ten grams of gold were sold at Rs306,241, marking an increase of Rs1,715 in a single day. The surge highlights how closely Pakistan’s market is tied to international gold trends.

Traders noted that the rise came just a day after a decline. On Wednesday, the price per tola had slipped by Rs1,400, closing at Rs355,200. Thursday’s recovery not only reversed that fall but also pushed the market to fresh highs.

International prices fuel momentum

The international gold market also recorded gains. Global prices reached $3,345 per ounce, up by $20 in a single session. The APGJSA reported that this rate included a $20 premium. Analysts pointed out that such increases often filter directly into Pakistan’s local rates due to the country’s reliance on international benchmarks for pricing.

Experts say global economic uncertainties, including concerns about inflation, currency volatility, and geopolitical tensions, continue to drive demand for gold. Investors worldwide are turning to the metal as a hedge against instability, which in turn raises its price.

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Silver follows gold’s lead

Silver also experienced a notable increase in Pakistan. Its price per tola jumped by Rs78 to reach Rs4,013. Though silver remains much cheaper than gold, traders view its movement as significant. Rising silver prices often indicate broad-based demand for precious metals, especially when global investors diversify their holdings.

Market observers explained that silver is increasingly being used in industrial applications such as electronics and solar technology. This dual role as both an investment and industrial commodity strengthens its position whenever global demand rises.

Impact on local jewellers

Jewellers across major cities, including Karachi, Lahore, and Islamabad, reported brisk adjustments in their pricing boards. Shopkeepers said customers remain cautious, with many choosing to wait for stability before making purchases.

Some jewellers noted that while demand for wedding-related gold jewellery continues, general buyers are hesitant. High prices have reduced affordability for middle-income families, leading to slower sales despite the ongoing wedding season.

Investors eye opportunities

For investors, the rise has reinforced gold’s position as a reliable store of value. Analysts suggest that those who bought during Wednesday’s dip have already benefitted from Thursday’s rebound.

Economic experts also believe that gold’s upward trend could persist if global uncertainty continues. They recommend that small investors consider fractional investments or gold-backed financial products rather than physical purchases, given the high volatility and storage concerns.

Broader economic context

Pakistan’s gold market does not move in isolation. The strength of the dollar, fluctuations in oil prices, and central bank policies worldwide all affect its trajectory. With inflation remaining a challenge domestically, many households continue to treat gold as both a cultural necessity and a financial shield.

Rising gold prices also carry wider implications. Import bills increase since Pakistan relies heavily on gold imports to meet domestic demand. This adds pressure to foreign reserves, already strained by other imports. Economists warn that if the trend continues, it could affect Pakistan’s trade balance and currency stability.

Looking ahead

Traders are closely watching both the international market and local buying patterns. Many believe prices may remain volatile in the coming weeks. Global events, such as central bank decisions, geopolitical developments, or shifts in the dollar’s value, could spark further swings.

For now, Pakistan’s gold and silver markets are experiencing steady upward momentum. While this benefits investors seeking security, it poses challenges for everyday buyers and jewellers struggling to maintain sales in the face of soaring costs.

The rise in the gold price in Pakistan has once again highlighted the country’s deep connection to global markets. It reflects not only the demand for precious metals but also the economic anxieties shaping financial decisions at home and abroad.