Gold prices in Pakistan

Gold prices experienced another sharp rise both in the local and international markets, extending their upward momentum after a brief dip earlier in the week. This sustained increase comes amid global economic uncertainties, a weakening U.S. dollar, and rising expectations of future interest rate cuts by the Federal Reserve. Investors worldwide continue to shift towards safe-haven assets such as gold, pushing prices closer to record highs.

Significant Jump in International Gold Prices

In the international bullion market, gold prices surged by $25, taking the per-ounce price to $2,913. Spot gold rose by 0.3%, moving closer to its record peak of $2,942.70 achieved earlier in the week. U.S. gold futures also firmed, increasing by 0.4% to reach $2,940.90.

The upward trend continued globally across subsequent sessions. According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the international rate — inclusive of premium — later jumped to $4,075 per ounce, marking a significant $74 increase in a single day. In another trading session, international gold prices climbed further by $27, reaching $4,245 per ounce including premium.

This consistent upward trajectory reflects renewed confidence in gold as geopolitical and economic factors fuel buying activity. Analysts note that the global bullion market is responding strongly to ongoing uncertainty over U.S. President Donald Trump’s tariff policies, which many fear could escalate trade tensions worldwide. Every mention of a new tariff or reciprocal tax tends to push investors toward safer assets, leading to higher gold demand.

Gold Prices in Pakistan Continue Upward Momentum

In Pakistan, the impact of rising global prices is clearly visible, with local gold rates experiencing substantial increases over the past several days.

In the latest session, the price of per tola gold surged by Rs2,500, reaching Rs304,000, while the rate for 10 grams rose by Rs2,144, settling at Rs260,631.

A separate surge saw gold per tola jump by Rs7,400, bringing the price to a new high of Rs429,862. Similarly, the rate for 10 grams increased by Rs6,337, hitting Rs368,530.

The upward movement continued in the latest market report, where the price of per tola gold increased by Rs2,700, reaching Rs446,862, and 10 grams rose by Rs2,315, settling at Rs383,112.

The back-to-back spikes reflect how closely Pakistan’s local bullion market is tracking international gold behavior. With the Pakistani rupee also experiencing ongoing pressure, local gold prices remain highly sensitive to global shifts.

Silver Prices Also Rise Sharply

Alongside gold, silver prices in Pakistan have also trended upward.

• Per tola silver increased by Rs55 to reach Rs3,367, while the price for 10 grams increased by Rs47 to Rs2,886.

• In later sessions, silver surged by Rs115, reaching Rs5,209 per tola.

• Most recently, silver climbed by Rs54, pushing the per-tola rate to Rs5,963.

Globally, spot silver remained steady at $32.23 per ounce, while later trading sessions saw silver jump 0.7% to hit a new high of $56.78 per ounce, after previously touching an all-time peak of $57.86.

Factors Driving the Global Gold Rally

Several major factors are contributing to the sharp rise in both local and global gold prices.

1. Weakening U.S. Dollar

The U.S. dollar index fell by 0.2%, making gold — which is priced in dollars — cheaper for holders of other currencies. A weaker dollar traditionally boosts the demand for gold, as investors shift toward hard assets when currency volatility increases.

2. Trade Tensions Linked to Trump’s Tariff Plans

President Trump’s announcement of reciprocal tariffs on countries imposing duties on U.S. imports created uncertainty in global markets. Analysts believe that such unpredictability encourages investors to seek safe-haven assets, thereby raising gold demand.

Ajay Kedia, Director at Kedia Commodities in Mumbai, stated:
“Trump is unpredictable and, as long as uncertainty remains in the market, gold will continue to receive support.”

3. Anticipation of U.S. Inflation and Economic Data

Gold prices briefly dipped following stronger-than-expected U.S. CPI data, but quickly recovered due to continuing fears of a prolonged trade war. Investors are now closely monitoring upcoming U.S. economic indicators such as the Producer Price Index (PPI) and retail sales report.

4. Federal Reserve Rate Cut Expectations

Federal Reserve Chair Jerome Powell reiterated that the Fed is in no rush to cut rates. However, market sentiment suggests otherwise. According to analysts at OCBC Bank:

• A 78% chance of a 25-basis-point rate cut by September

• A 94% chance of a cut by October

Lower interest rates generally boost gold demand, as they reduce the opportunity cost of holding non-yielding assets like gold.

5. Concerns Over Global Slowdown

Weak economic data from multiple regions, including signs of slowing global growth, is pushing investors toward gold as a hedge against uncertainty and inflation.

Market Forecast and Investor Outlook

With global economic volatility persisting, analysts believe gold prices may continue their upward trajectory. ANZ Research forecasts that gold may reach a record high of $3,000 per ounce in 2025, driven by long-term structural factors including geopolitical instability, central bank buying, and inflationary pressures.

For Pakistani investors, gold remains a popular store of value, especially during periods of local currency depreciation and inflation. As long as international markets remain volatile, the local bullion market is expected to reflect global price movements.

Conclusion

Gold prices in Pakistan and around the world continue to rise sharply, supported by international market strength, a weakening dollar, and heightening economic uncertainty. With tariff tensions, interest rate expectations, and global slowdown fears shaping market sentiment, gold is likely to remain a preferred safe-haven asset in the foreseeable future. Silver prices have followed a similar upward trend, further highlighting the increased demand for precious metals. As investors brace for more volatility, gold appears positioned for continued strength in the coming months.