The gold price in Pakistan soared to a fresh all-time high on Tuesday, pushing the precious metal closer to the symbolic Rs. 400,000 mark. According to data released by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of 24-karat gold per tola surged by Rs. 4,100, settling at Rs. 388,100 compared to Rs. 384,000 a day earlier.
This sharp increase highlights the growing pressure of both international market trends and local economic conditions. With the rupee continuing to depreciate and global investors flocking to safe-haven assets, gold has maintained its upward momentum in Pakistan.
Daily Price Changes in Gold
The impact of Tuesday’s surge was evident across different weight categories.
- 24-karat gold (per tola): Rose by Rs. 4,100 to Rs. 388,100
- 24-karat gold (10 grams): Gained Rs. 3,514 to reach Rs. 332,733
- 22-karat gold (10 grams): Increased by Rs. 3,222 to Rs. 305,016
These record highs continue a trend that has seen gold rally steadily in recent months, with no signs of slowing down.
Silver Prices Also Move Higher
The upward pressure was not confined to gold. Silver also gained momentum in both domestic and international markets.
- 24-karat silver (per tola): Rose by Rs. 20 to Rs. 4,358
- 24-karat silver (10 grams): Increased by Rs. 17 to Rs. 3,736
- International silver price: Gained $0.20 to reach $41.25 per ounce, compared to the previous $41.05
Silver’s rise reflects similar investor demand as gold, with industrial applications and safe-haven appeal driving higher prices.
Global Factors Driving Gold Prices
International markets have been a key driver in this unprecedented rally. Spot gold prices remained firm above $3,650 per ounce, boosted by expectations of interest rate cuts from the U.S. Federal Reserve.
Several global factors are contributing to this surge:
- Weak U.S. Dollar: The dollar’s decline makes gold cheaper for holders of other currencies, boosting international demand.
- Federal Reserve Policy: With inflationary pressures high and the Fed signaling potential rate cuts, investors are shifting to gold.
- Geopolitical Uncertainty: Global conflicts and economic instability are encouraging investors to protect wealth by moving into precious metals.
- Safe-Haven Buying: Both institutional investors and individuals are increasing their gold holdings, expecting long-term gains.
Local Market Pressures
While global dynamics play a major role, local factors in Pakistan are amplifying the effect.
- Rupee Depreciation: The consistent weakening of the Pakistani rupee against the U.S. dollar has inflated import costs for gold.
- High Inflation: Domestic inflation is pushing consumers to seek gold as a hedge, increasing demand even at record prices.
- Wedding Season Demand: Cultural demand for gold jewelry, especially during wedding seasons, adds further upward pressure.
Impact on Consumers and Traders
The rising gold price in Pakistan is having a mixed impact across the economy.
- Investors: For investors, gold remains a reliable store of value, offering protection against both inflation and currency depreciation. Many view the surge as an opportunity to diversify portfolios.
- Jewelry Buyers: Consumers planning weddings or festive purchases are feeling the burden, with gold jewelry now significantly more expensive than just a few months ago. Many are shifting toward 22-karat jewelry or lighter designs.
- Traders and Jewellers: Local jewelers are struggling to balance demand, as many customers hesitate to buy at such elevated prices. Smaller ornaments are seeing relatively stronger sales compared to traditional heavy sets.
Is Rs. 400,000 per Tola Next?
Market analysts suggest that the Rs. 400,000 milestone is no longer a distant possibility. If global trends continue and the rupee remains under pressure, prices may cross this psychological barrier soon.
International forecasts are equally bullish, with some analysts projecting that global gold prices could touch $4,000 per ounce by early next year if central banks pursue aggressive monetary easing.
Key Takeaways
- Gold price in Pakistan surged to Rs. 388,100 per tola, setting a new record.
- Silver also rose, reaching Rs. 4,358 per tola in the domestic market.
- Global drivers include dollar weakness, Federal Reserve rate cut expectations, and geopolitical uncertainty.
- Local factors like rupee depreciation and cultural demand amplify the effect.
- Analysts warn that the Rs. 400,000 per tola threshold could be breached soon.
Advice for Buyers and Investors
- Investors: Maintain gold in portfolios as a hedge but diversify with other assets to balance risk.
- Jewelry Buyers: Consider timing purchases carefully. Smaller ornaments or 22-karat jewelry may provide some cost relief.
- Traders: Monitor global trends closely, as local price swings remain heavily influenced by international markets.
