Gold prices in Pakistan surged significantly on Monday, following a recent decline in the preceding session. The local market witnessed a sharp increase in gold rates, aligning with international trends.
The price of gold per tola soared by Rs4,000, reaching a historic peak of Rs303,000. Similarly, the price of 10-gram gold recorded an increase of Rs3,429, bringing it to Rs259,773, as per the data provided by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA).
On the international market, gold prices remained firm on Monday, hovering near their record high from the previous session.
The demand for gold saw a notable rise as investors sought to protect their wealth against mounting financial and economic uncertainties.
Global Market Influence on Gold Prices
Over the weekend, former U.S. President Donald Trump announced new 25% tariffs on all steel and aluminium imports, escalating fears of a global trade war. These tariffs come on top of existing duties on metals, further complicating the international trade environment.
Gold is widely considered a safe-haven investment during periods of economic distress, and investors are increasingly turning to the precious metal to shield their assets from market volatility. However, rising interest rates could dampen gold’s appeal as a non-yielding asset.
The international gold rate witnessed an impressive surge on Monday, reaching an all-time high of $2,903 per ounce, including a premium of $20. This marks a $42 increase in a single trading day, further solidifying gold’s strength in the global market.
This increase follows a volatile week where gold prices fluctuated due to mixed economic signals from leading economies, including the United States, China, and the Eurozone.
Weekend Gold Price Drop Before the Rebound
Before the Monday surge, gold prices in Pakistan experienced a decline on Saturday, dropping by Rs1,046 per tola, settling at Rs299,000. This fluctuation is indicative of the ongoing instability in the international gold markets, where rapid price shifts are becoming increasingly common.
Despite the brief dip, the overall trend suggests that gold remains a strong investment choice, particularly for those looking to hedge against currency depreciation and inflation.
While gold was the primary focus of the market, silver prices also saw an upward trajectory. The price of silver per tola increased by Rs43, reaching Rs3,373.
- The U.S. dollar’s performance has a direct impact on gold prices. A weaker dollar makes gold cheaper for investors holding other currencies, boosting demand.
- Currency fluctuations in emerging markets, including Pakistan, play a crucial role in shaping local gold prices.
