Gold prices in the domestic market surged to new record highs on Friday, tracking a strong rally in international markets driven by heightened geopolitical tensions and expectations of further US interest rate cuts.
Read More: Gold soars to record Rs506,362 per tola in Pakistan
According to rates issued by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of one tola of 24-karat gold jumped by Rs9,100 to Rs514,662, while the 10-gram rate rose by Rs7,802 to Rs441,239. This marked the highest level ever recorded in the local bullion market.
Internationally, gold prices climbed sharply by $91 per ounce to reach $4,923 per ounce. Market analysts attributed the surge to increased investor demand for safe-haven assets amid global uncertainty and easing monetary policy expectations in the United States.
The steep rise in domestic gold prices has dampened demand from traditional jewellery buyers, particularly during the ongoing wedding season. Jewellers reported a noticeable decline in footfall, noting that many households are unable to afford gold at current prices. While retail demand has weakened, investor interest in the precious metal remains strong, as buyers continue to seek protection against inflation and currency volatility.
Since the beginning of 2025, gold prices have witnessed an extraordinary increase. The price of one tola has risen by Rs241,062 from Rs273,600 recorded on January 1, 2025, while the 10-gram rate has climbed by Rs206,671 from Rs234,568 during the same period. Over the same timeframe, international gold prices have surged by $2,299 per ounce, reflecting sustained global demand.
Silver prices also followed the upward trend. The price of one tola of 24-karat silver increased by Rs372 to Rs10,275, while the 10-gram rate rose by Rs319 to Rs8,809. In the international market, silver prices advanced by $3.72 per ounce to $98.
Read More: Gold prices fall by Rs 800 per tola
Market participants expect bullion prices to remain volatile in the near term, closely tracking global economic and geopolitical developments.