ISLAMABAD: Gold prices in Pakistan have soared to an all-time historichigh, with the per tola rate crossing the Rs500,000 threshold for the firsttime ever, driven by a relentless upward momentum in international bullionmarkets and persistent depreciation pressures on the local currency. OnJanuary 21, 2026, the All Pakistan Gems and Jewellers Sarafa Associationreported 24-karat gold at Rs506,362 per tola, marking a sharp single-dayincrease of Rs12,700 from the previous close. This surge reflects broaderglobal trends where safe-haven demand has propelled spot gold beyond $4,860per ounce, amplifying local rates through currency conversion effects.
The dramatic escalation in domestic gold prices began accelerating in earlyJanuary 2026, as international spot gold climbed steadily from around$4,500 per ounce to new peaks amid geopolitical tensions, inflationaryconcerns, and central bank purchasing patterns worldwide. In Pakistan, theper tola price, traditionally the benchmark unit equivalent toapproximately 11.66 grams, had hovered below Rs480,000 in late 2025 butshattered multiple records within weeks. By mid-January, incremental dailygains of Rs4,000 to Rs7,500 became commonplace, culminating in thebreakthrough above Rs500,000, a psychological and economic milestonesignaling profound shifts in investor behavior and market dynamics.
Analysts attribute the record-breaking levels primarily to the interplaybetween global gold benchmarks and the Pakistani rupee’s valuation. Withinternational gold trading at approximately $4,860 per troy ounce onJanuary 21, equivalent to over Rs1.36 million per ounce in local terms, theconversion directly inflates domestic quotations. The rupee’s ongoingvolatility against the US dollar has exacerbated this effect, as evenmodest global upticks translate into substantial local increases. Data fromreliable tracking sources indicate that gold’s year-to-date performance inPakistan has exceeded 60 percent in some periods, far outpacing traditionalinvestment avenues like stocks or fixed deposits.
This historic peak carries significant implications for the averagePakistani consumer and investor. Gold has long served as a preferred hedgeagainst inflation and economic uncertainty in the country, particularlyduring periods of high inflation and currency weakening. The current rateshave made purchases of jewelry, a cultural staple for weddings andfestivals, considerably more expensive, potentially dampening demand in theretail segment. However, for investors holding physical gold orgold-related assets, the rally has delivered substantial unrealized gains,reinforcing gold’s status as a reliable store of value amid broadereconomic challenges.
Market observers note that the surge aligns with a multi-year bull run inprecious metals, fueled by factors such as elevated geopolitical risks,central bank diversification away from dollar reserves, and expectations ofaccommodative monetary policies in major economies. In Pakistan, where goldimports contribute to the trade balance, higher prices strain foreignexchange reserves while simultaneously boosting the appeal of domestichoarding. The All Pakistan Gems and Jewellers Sarafa Association hasconsistently updated rates reflecting these realities, with per 10 gramsprices now exceeding Rs434,000, up sharply from earlier levels in the month.
Economic experts caution that sustained high gold prices could influencebroader monetary dynamics, including potential impacts on inflationexpectations and consumer spending patterns. While gold’s safe-haven allurestrengthens during uncertainty, the elevated costs may prompt somehouseholds to redirect savings toward other assets or delay majorexpenditures. Nonetheless, the precious metal’s performance underscores itsenduring role in Pakistan’s informal economy and personal wealthpreservation strategies, particularly in an environment of fluctuatingmacroeconomic indicators.
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The record highs have also drawn comparisons to previous peaks, though noneapproached the current thresholds. Historical data shows gold per tolararely surpassed Rs300,000 before recent years, highlighting theextraordinary nature of the 2026 rally. Traders report increased tradingvolumes as both buyers and sellers react to the volatility, with someanticipating further upside if global uncertainties persist. Regulatoryauthorities continue to monitor the market closely to ensure transparencyand curb any speculative excesses.
In summary, the unprecedented elevation of gold rates in Pakistanrepresents a confluence of international momentum and domestic economicfactors, marking a defining moment for investors and consumers alike. Asthe market digests these levels, attention turns to whether this peaksustains or invites corrections in the coming weeks.
Association, International Bullion Market
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