On Friday, the price of gold in Pakistan soared to unprecedented levels, setting a new record in the country’s history. According to the Gems and Jewelers Associations, the cost of one tola (11.66 grams) of gold increased by a staggering 2,300 rupees in the local bullion market. As a result, the price per tola of gold reached an all-time high of Rs 265,900. Simultaneously, the price of 10 grams of gold experienced a significant surge of Rs 2,486, bringing the total to Rs 227,966.
A Historic Surge in Gold Prices
This dramatic rise in gold prices marks a historic moment for Pakistan’s bullion market. Such spikes are typically driven by a combination of global market trends, local demand, and economic uncertainty. The unprecedented increase in gold prices has left many market analysts and traders closely watching how the situation will unfold in the coming days.
Silver prices also followed suit, witnessing a rise of Rs 50 per tola. The new price for silver per tola now stands at Rs 2,950, further demonstrating the widespread impact of the changing dynamics in precious metal markets.
Global Factors at Play
Pakistan’s local bullion market is heavily influenced by the international gold market. On Friday, the price of gold in the international market jumped by $51 per ounce, reaching $2,566 per ounce. This global increase in gold prices has been driven by several factors, including rising inflation, geopolitical tensions, and concerns over economic stability in key regions of the world.
Gold has historically been viewed as a safe-haven asset, offering protection against inflation and currency depreciation. With rising global uncertainty and persistent economic concerns, more investors are turning to gold as a store of value. This increased demand, both domestically and globally, has contributed to the current spike in gold prices.
Impact on the Local Market
The surge in gold prices has far-reaching implications for both jewelers and consumers in Pakistan. Jewelers may benefit from higher prices, but buyers—especially those seeking to purchase gold for investment or special occasions like weddings—are finding it increasingly difficult to afford the precious metal.
This sharp rise in prices could dampen demand in the local market, potentially leading to a slowdown in gold transactions. Consumers are likely to turn to alternative forms of investment or seek lower-cost precious metals, such as silver.
Looking Ahead
With no immediate signs of gold prices stabilizing, many market experts anticipate further fluctuations in the coming weeks. Global market conditions, including ongoing geopolitical tensions and inflationary pressures, will likely continue to influence both local and international bullion prices.
For now, Pakistan’s gold market is experiencing one of its most significant moments in history, with prices that were unimaginable just a few months ago. Jewelers and consumers alike will need to adapt to these changing market conditions, as the future of gold prices remains uncertain.