ISLAMABAD: Gold prices in Pakistan witnessed a significant upward movementon Tuesday, climbing in tandem with robust gains recorded in theinternational bullion market. The local price of gold per tola rose byRs3,200 to settle at Rs467,962, while 10 grams of the precious metalincreased by Rs2,743 to reach Rs401,201. This fresh surge comes merely aday after Monday’s substantial jump of Rs9,200 per tola, highlighting theaccelerating momentum in gold trading both domestically and globally.Market analysts attribute the latest rise to renewed safe-haven demand amidlingering geopolitical uncertainties and inflationary concerns across majoreconomies.
The All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), theprimary authority for precious metal rates in the country, confirmed thesefigures through its daily price bulletin. Tuesday’s adjustment pushed thecumulative two-day increase to over Rs12,400 per tola, representing one ofthe most aggressive short-term rallies observed in recent months. Thispattern has intensified investor interest in physical gold as a hedgeagainst currency depreciation and economic instability, particularly as thePakistani rupee continues to face intermittent pressure in the interbankmarket.
On the international front, spot gold prices climbed by $32 during thetrading session, reaching $4,456 per ounce, inclusive of a $20 regionalpremium. The sustained appreciation in global rates has been driven bymultiple macroeconomic factors, including expectations of delayed monetaryeasing by leading central banks, persistent inflation readings above targetlevels, and renewed tensions in several conflict zones. Investors worldwidehave increasingly turned toward gold as a reliable store of value, pushingthe yellow metal to multi-year highs and creating ripple effects inimport-dependent markets such as Pakistan.
The domestic gold market remains highly sensitive to international pricemovements due to the country’s reliance on imported bullion. Anyfluctuation in the dollar value or global spot rates directly influenceslocal pricing, often amplified by additional factors such as transportationcosts, dealer margins, and taxation structures. Tuesday’s Rs3,200 per tolagain closely mirrored the proportionate international rise when adjustedfor the prevailing exchange rate and local premiums, demonstrating thetight correlation that exists between Karachi sarafa markets and Londonbullion trading.
Silver prices followed a similar upward trajectory, albeit with a moremodest increase. The white metal advanced by Rs338 per tola to close atRs8,361, reflecting spillover effects from the dominant gold rally. Whilesilver traditionally exhibits higher volatility compared to gold, itsrecent performance has been comparatively restrained, partly becauseindustrial demand has yet to fully recover in key manufacturing sectors.Nevertheless, the combined appreciation in both metals has contributed toheightened activity across jewellery showrooms and investment countersthroughout major cities.
Economic observers note that the current gold price trajectory is occurringagainst the backdrop of Pakistan’s ongoing efforts to stabilise itsexternal account and contain inflationary pressures. High gold pricestypically exert upward influence on overall consumer prices, particularlyin urban centres where jewellery purchases constitute a significant portionof household expenditure during festive seasons and family events. Thesustained rally has also prompted renewed discussion regarding the role ofgold in national reserves and private investment portfolios amidfluctuating macroeconomic indicators.
Historical data compiled by the APGJSA reveals that gold prices in Pakistanhave appreciated by more than 38 percent over the past twelve months,significantly outpacing the average inflation rate during the same period.This performance has reinforced gold’s status as a preferred asset classfor wealth preservation, especially among middle and upper-income segmentsconcerned about long-term purchasing power erosion. Market participantsanticipate that any further escalation in international rates could propellocal tola prices toward the psychologically important Rs480,000 thresholdin the near term.
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The latest price movement has also drawn attention from regulatoryauthorities monitoring commodity markets for potential speculativeactivity. While the current uptrend appears fundamentally driven,authorities continue to emphasise the importance of transparent pricingmechanisms and adherence to official rate announcements issued byrecognised associations. Investors are advised to verify rates throughmultiple credible sources before executing large transactions to avoiddiscrepancies arising from unofficial dealer quotes.
Source: https://www.dawn.com/news/(adapted from commodity market reports)
Tags: Pakistan, Gold Prices, APGJSA, International Bullion, Silver Rates
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