KARACHI: Gold prices in Pakistan surged to an all-time high on Wednesday after a sharp rally in the international market, pushing the 24-karat rate to Rs506,362 per tola.
The domestic price climbed by Rs12,700 per tola from Tuesday, driven by a $127 per ounce jump in global gold prices to $4,840 per ounce — the highest level ever recorded.
The unprecedented rise has intensified the burden on jewellery buyers amid the ongoing peak wedding season. However, investors remain upbeat as gold continues its strong rally, fuelled by geopolitical tensions, ongoing tariff disputes, and United States President Donald Trump’s efforts to assert control over Greenland.
According to rates issued by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA) based on interbank exchange rates, the price of 10-gram gold increased by Rs10,888 to Rs434,123.
At the start of the year on January 1, gold prices stood at Rs234,568 per 10 grams and Rs273,600 per tola, when the international price was $2,624 per ounce. Since then, domestic prices have jumped by Rs199,555 per 10 grams and Rs232,762 per tola, while the global rate has surged by $2,216 per ounce.
Gold has emerged as the top-performing asset class in terms of returns, with equities trailing in second place.
Despite the official rates, local market prices on Wednesday were somewhat lower, with jewellers offering gold between Rs503,000 and Rs505,500 per tola, compared to the association’s announced rate of Rs506,362.
“The difference between association and market rates depends on demand and supply,” APSGJA President Qasim Shikarpuri said, noting that investor activity — rather than jewellery demand — was currently driving the market.
He added that investors in Pakistan and abroad were selling dollars to invest in gold, while central banks across several countries were also increasing their purchases of the precious metal.
Mr Shikarpuri said there was no shortage of gold in the domestic market despite strong investor interest, claiming that Pakistani gold was trading Rs25,000 per tola below cost compared to rates in Dubai.
Silver
Investor interest has also intensified in the silver market, where prices are rising amid a supply crunch.
The price of one-tola silver (24 karat) increased by Rs64 to Rs9,933, while the 10-gram rate rose by Rs54 to Rs8,515, in line with a modest increase in global silver prices to $94.58 per ounce, up $0.64.
However, due to heavy demand and limited availability, silver was being sold at a steep premium in the local market. “Silver is available at Rs14,500 per tola instead of the official Rs9,933, owing to a severe shortage — not only in Pakistan but also in Dubai,” Mr Shikarpuri said, adding that speculative activity was also influencing prices.
Meanwhile, All Karachi Jewellers and Manufacturers Association President Mohammad Haseen Qureishi noted that silver was unavailable at Rs15,000 per tola on Tuesday, while on Wednesday prices ranged between Rs13,500 and Rs14,000, depending on availability.