Gold Prices in Pakistan Surge as Global Market Rises

Gold prices in Pakistan rose sharply on Monday, continuing a volatile trend that has unsettled both local and international markets.

According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the rate per tola increased by Rs. 7,400 to Rs. 429,862. The price of 10 grams also climbed by Rs. 6,337, settling at Rs. 368,530.

This jump comes just a day after bullion had closed at Rs. 422,462 per tola, following a modest decline of Rs. 600.

International Market Pushes Precious Metals Higher

The surge in Pakistan’s gold prices reflects global momentum. APGJSA reported international rates at $4,075 per ounce, including a $20 premium, marking a $74 increase during the day.

Spot gold rose 1.4 percent to $4,053.40 per ounce by 0435 GMT, while U.S. futures for December delivery gained 1.3 percent to $4,062.40. Silver also advanced locally, rising Rs. 115 per tola to Rs. 5,209.

Economic Concerns Driving Demand

Analysts say expectations of another U.S. Federal Reserve interest rate cut in December, combined with weak economic indicators, have fueled demand for safe-haven assets. The dollar’s weakness has further boosted investor appetite for bullion.

“Gold remains a hedge against uncertainty,” one market observer noted, pointing to inflationary pressures and slowing growth forecasts.

Local Impact of Rising Rates

For Pakistani buyers, higher gold prices have made jewelry purchases more expensive, especially ahead of the wedding season. Jewellers report that many customers are opting for lighter designs or delaying purchases.

Investors, however, see the surge as a safeguard against inflation and currency depreciation, reinforcing gold’s role as a store of value.

Outlook: Volatility Ahead

Analysts caution that gold prices may remain volatile in the weeks ahead, with the Federal Reserve’s December decision and global economic data likely to shape the next moves.