Karachi — The price of gold in Pakistan continued its steep upward trajectory today, witnessing yet another significant surge of Rs 5,800 per tola, according to the latest figures released by the All Pakistan Sarafa Jewellers Association (APSGA).
Following the fresh increase, the price of 24-karat gold per tola has climbed to Rs 440,900, marking one of the highest levels in the country’s bullion market history.
Meanwhile, the price of 10 grams of gold also rose by Rs 4,972, taking it to Rs 378,000.
International Market Impact
The association further reported that gold prices in the international market have also continued their upward climb, gaining 58 US dollars to reach $4,198 per ounce.
This surge in international rates, combined with Pakistan’s weakening currency and persistent inflationary pressures, has directly influenced local prices, further burdening buyers and investors alike.
Economic Factors Behind the Surge
Experts attribute this consistent rally in gold prices to multiple economic factors. The ongoing global economic uncertainty, particularly due to geopolitical tensions, has driven investors worldwide toward gold as a safe-haven asset.
Additionally, the Pakistani rupee’s depreciation against the US dollar and rising domestic inflation rates have further intensified local gold prices. Jewelers say that as the rupee weakens, the cost of importing raw gold rises, pushing up retail prices across markets.
Local Market Reactions
Gold traders in Karachi, Lahore, and other major cities report a slowdown in retail jewelry sales, as buyers struggle to keep up with the rapidly rising prices. “Gold has now become an investment commodity rather than a jewelry purchase for occasions,” one Karachi jeweler commented.
At the same time, some investors are viewing the surge as an opportunity to secure assets against inflation, resulting in increased demand for gold bars and bullion certificates instead of traditional jewelry.
Historical Context
This recent spike continues a trend of record-breaking price increases that began earlier this year, with gold gaining tens of thousands of rupees per tola within a few months. Analysts predict that unless global and local economic stability is restored, gold prices may continue to hover near record highs.
