With an increase of Rs. 1,800 in a single day, the rates per tola has now reached a staggering Rs. 340,600, according to data published by the All-Pakistan Gems and Jewelers Sarafa Association (APGJSA).
- On Thursday, gold rose by Rs. 7,800 per tola, marking a sharp incline and setting the tone for what was to follow.
- Friday saw an even more dramatic escalation, with prices surging by Rs. 10,000, propelling gold to Rs. 338,800 per tola.
- On Saturday, the price climbed another Rs. 1,800, settling at Rs. 340,600 per tola, the highest ever recorded in the country.
Simultaneously, the rate for 10 grams of gold jumped by Rs. 1,543, reaching Rs. 292,009, intensifying the market buzz and further consolidating investor interest.
International Gold Rates
The global gold market also contributed to the local spike. On Friday, the international price of gold increased to $3,236 per ounce (including a $20 premium), registering an $18 increase in a single day.
Pakistan continues to grapple with rising inflation, currency depreciation, and ongoing economic uncertainty. These conditions prompt individuals and institutions to invest in safe-haven assets like gold, seen as a hedge against economic volatility.
The persistent decline in the value of the Pakistani Rupee (PKR) against the US Dollar has made imports significantly costlier, including precious metals. With gold traded globally in USD, the weakening PKR translates to higher local prices.
International markets have also seen an increase in investor demand for gold, primarily due to geopolitical tensions, recession fears, and unstable financial markets.
A combination of market speculation, jewellery industry demand, and seasonal buying has added momentum to the gold price rally. Local buyers, anticipating further hikes, are rushing to purchase, reinforcing the upward trend.
Gold as an Investment
Those who purchased gold earlier this year have already seen substantial returns, given the massive upward movement. This has spurred even more investors to enter the market, hoping to benefit from future gains.
Local traders and industry experts describe this week’s Gold Rates rally as “historic and potentially unsustainable” in the short term. However, they acknowledge that unless significant economic corrections are introduced, gold prices may continue to climb.
According to jewelers in major markets like Karachi, Lahore, and Islamabad, sales have remained steady, despite higher prices. Consumers are prioritizing gold purchases as a store of Gold Rates value, particularly for wedding gifts and dowries, which traditionally involve gold ornaments.
While investors benefit, jewellery retailers face challenges in maintaining profit margins. Rising prices have increased input costs, forcing some retailers to reduce stock or shift toward lighter, more affordable designs to appeal to price-sensitive customers.
