KARACHI: Gold prices rose by Rs 2,900 per tola on Friday to hit an all-time high in the local market on the back of a surge in international prices. This significant increase reflects lingering concerns in the global economy and escalating geopolitical tensions, which continue to push investors towards gold as a safe-haven asset.
According to the All Sindh Saraf Jewelers Association, gold prices in the local market reached Rs 265,900 per tola. Similarly, 10 gram gold rose by Rs 2,486 to Rs 227,966.
On the international market, gold prices rose by $51 to reach $2,566 an ounce, a figure that also represents an all-time high. Local jewelers noted that the rise in international prices has had a direct impact on local rates, although prices in Pakistan are adjusted at a premium of $20 over global rates to account for differences in local market dynamics.
Despite the constant rise in prices, demand for gold jewelery remains subdued in Pakistan. Jewelry store owners report that consumers are increasingly turning to raw gold or gold bars as a form of investment rather than purchasing gold jewelry. This shift was due to weak purchasing power in the country, which made it difficult for many consumers to afford gold for personal use.
A senior goldsmith said that while gold remains an attractive asset for investors, it is becoming increasingly difficult for ordinary consumers to buy it. “The rise in prices has hit the average buyer hard. People are choosing to invest in raw gold as a way to protect their savings, but the demand for jewelery has come down significantly,” he said. He further added that some individuals are even selling their gold assets to meet the rising cost of living.
Analysts suggest that the rise in gold prices is a direct result of ongoing geopolitical instability, particularly in Europe and the Middle East, as well as economic problems in major economies such as the US. Uncertainty surrounding global markets has prompted investors to seek refuge in gold, further pushing up prices.
Silver prices also saw an uptick, with rates rising by Rs 50 to Rs 2,950 per tola. The price of 10 gram silver also rose by Rs 42.86 to Rs 2,529.14, although demand for silver remained relatively flat compared to gold.
As long as geopolitical tensions and economic uncertainty persist, the upward trend in gold prices is expected to continue and gold will remain the preferred asset for investors seeking financial security.
