In a dramatic gold price rally, Pakistan witnessed an unprecedented spike in bullion rates on Friday, driven by soaring global demand and investor uncertainty. The price of gold per tola jumped by Rs14,100, setting a new record high at Rs456,900 in the local market. The surge reflects the international trend, where gold touched fresh peaks amid economic concerns and market volatility.
Record-Breaking Day for Gold
According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), 10 grams of gold rose by Rs12,089, reaching Rs391,718. This sharp rise comes just a day after prices had already climbed Rs1,900 per tola to close at Rs442,800. The back-to-back increases have stunned traders and consumers alike, reinforcing gold’s dominance as a safe-haven asset during global financial uncertainty.
Jewellers in Karachi and Lahore reported heightened customer inquiries but limited purchasing activity due to the steep prices. “Investors are holding back, waiting for stability, but small buyers are clearly affected,” said one bullion trader in Karachi’s Sarafa Bazaar.
International Gold Market Fuels Local Rise
The upward momentum in Pakistan’s gold market aligns closely with the international rally. Global gold prices surged to $4,358 per ounce — with a $20 premium — marking a $141 jump in a single day. This increase pushed the metal’s value beyond $4,300 for the first time in history, signaling renewed investor confidence in precious metals.
Spot gold climbed 0.9% to $4,362.39 per ounce after hitting an intraday record of $4,378.69. Meanwhile, US gold futures for December delivery advanced 1.7%, settling at $4,375.50.
The global surge is being attributed to multiple factors: rising geopolitical tensions, fears of an economic slowdown, weakness in US regional banks, and expectations of further interest rate cuts by the Federal Reserve. Each of these developments has prompted investors to seek safety in gold, driving prices to historic levels.
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Silver Joins the Rally
Silver also followed the upward trend in precious metals. The price per tola of silver increased by Rs167, settling at Rs5,504 — another record high. Analysts note that while silver typically trails gold in terms of price movement, it has gained momentum this week, benefiting from the same global conditions that boosted gold.
Global Economic Fears Drive Safe-Haven Demand
Experts point out that investors are rushing toward gold amid growing financial instability. Weaknesses in US regional banks and heightened concerns about global trade frictions have rattled markets. Moreover, the anticipation of upcoming rate cuts by the Federal Reserve has weakened the dollar, further boosting demand for gold.
“Gold is behaving exactly as expected — as a safe store of value in uncertain times,” said a global market analyst based in Singapore. “With inflationary pressures easing and the possibility of rate cuts increasing, gold becomes an even more attractive asset.”
Over the week, gold prices have risen nearly 8.6%, marking their strongest weekly performance since September 2008. The last time bullion saw such momentum was during the global financial crisis, highlighting the scale of current market anxieties.
Local Market Reactions and Investor Behavior
In Pakistan, jewellers and investors are keeping a close eye on international markets, knowing that global shifts have a direct impact on domestic rates. Local traders say that while the price hike has hurt everyday consumers, it has also drawn renewed interest from investors seeking long-term security.
“Gold may be expensive now, but for many, it remains a reliable investment,” said Muhammad Shafiq, a Lahore-based jeweller. “Given the global situation, this could be the new normal for a while.”
The All-Pakistan Gems and Jewellers Sarafa Association continues to monitor global movements, with expectations that prices could stabilize slightly next week if international demand cools. However, any major geopolitical event or policy shift in the US could push prices even higher.
The Bigger Picture: Economic Uncertainty and Market Confidence
The ongoing rally underscores how global uncertainty continues to reshape investment trends. As stock markets fluctuate and inflation remains unpredictable, investors are returning to traditional safe-haven assets like gold.
Financial experts suggest that the recent run-up could encourage central banks, especially in Asia, to expand their gold reserves as part of a broader diversification strategy. This could further strengthen global demand and keep prices elevated in the coming months.
Meanwhile, Pakistani consumers face tough choices. Rising gold prices not only impact investment portfolios but also affect the jewelry market, especially during the wedding season. For many families, the surge means postponing purchases or opting for lighter designs to manage costs.
Looking Ahead
Market watchers anticipate that gold’s upward momentum may persist in the short term, especially if economic indicators in the United States and Europe continue to weaken. With inflationary fears and trade disputes adding to investor caution, the global gold price rally shows no immediate signs of slowing down.
In Pakistan, traders expect minor corrections but no dramatic fall, given the strength of international trends. The gold price rally has once again proven the metal’s timeless appeal as a hedge against uncertainty — a symbol of stability in turbulent financial times.
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