ISLAMABAD: Gold prices in Pakistan continued their remarkable upwardtrajectory on Wednesday, shattering previous records and reaching anall-time high in the local market, driven by strong international momentumand persistent domestic demand. According to the All-Pakistan Gems andJewellers Sarafa Association, the price of gold per tola surged by Rs 4,300during the day, settling at Rs 486,162. This sharp increase follows a moremodest rise of Rs 900 recorded on Tuesday when the metal closed at Rs481,862, highlighting the accelerating pace of the ongoing rally that hascaptivated investors and jewellers alike.
The domestic surge mirrors developments in the global bullion market wherespot gold demonstrated robust strength by climbing $43 per ounce to reach$4,638, inclusive of a $20 regional premium. Market analysts attribute thisinternational appreciation to a combination of factors including renewedgeopolitical tensions, expectations of monetary policy easing by majorcentral banks, and gold’s traditional role as a hedge against inflation andcurrency depreciation. The latest movement has pushed gold prices wellbeyond the psychological barrier of $4,600, reinforcing bullish sentimentamong traders worldwide.
In Pakistan, the per tola price has now increased by more than Rs 30,000within the past three weeks alone, reflecting both the direct impact ofinternational rates and the persistent depreciation pressure on thePakistani rupee against the US dollar. Currency fluctuations remain acritical amplifier of local gold price movements because the commodity ispriced in dollars on the world market before conversion to rupees. When therupee weakens, domestic prices rise even if international rates remainstable, creating a dual pressure that has intensified the current rally.
The 10-gram gold price followed a similar pattern, registering an increaseof Rs 3,687 to close at Rs 416,805 on Wednesday. This denomination, widelyused for smaller jewellery purchases and investment bars, provides a moreaccessible entry point for retail buyers. The consistent daily gains haveencouraged many households and small investors to view gold as a preferredstore of value during periods of economic uncertainty, particularly asother traditional investment avenues face volatility.
Silver prices also participated in the upward movement, though withcomparatively moderate momentum. The white metal advanced by Rs 500 pertola, bringing its price to Rs 9,575. While silver traditionally exhibitshigher volatility than gold, its recent gains have been more subdued,reflecting different industrial and investment demand dynamics.Nonetheless, the parallel rise in both precious metals underscoresbroad-based bullish sentiment across the commodities sector in Pakistan.
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Several economic observers note that the current gold price trajectorycoincides with heightened seasonal demand ahead of the upcoming wedding andEid seasons when jewellery purchases traditionally accelerate. Jewellersreport brisk inquiries from customers seeking to secure pieces at currentlevels before anticipated further increases. This consumer behaviour hascreated a self-reinforcing cycle where strong local buying supports higherprices, which in turn attracts more investment interest.
The sustained rally has also drawn attention from policymakers and economicplanners concerned about its implications for inflation expectations andhousehold consumption patterns. Gold’s role as an inflation hedge becomesparticularly pronounced when consumer prices rise steadily, promptingindividuals to allocate more resources toward the precious metal ratherthan other assets. Central bank reserves management and import requirementsfor gold also remain under scrutiny as domestic consumption continues atelevated levels.
Looking ahead, market participants remain divided on the near-term outlook.Some analysts anticipate consolidation if international prices correct,while others believe continued geopolitical risks and anticipated rate cutswill provide further upside momentum. Whatever the direction, the recordlevels achieved this week have firmly established 2026 as a landmark yearfor gold in both Pakistan and global markets.
