In a striking reflection of economic uncertainty, gold prices in Pakistan skyrocketed to an all-time high on Wednesday, cementing the precious metal’s status as a safe-haven asset. According to the All Pakistan Sarafa Gems and Jewellers Association, the price of 24-karat gold surged by Rs8,600 per tola, reaching an unprecedented Rs348,000. Similarly, 10 grams of gold climbed by Rs7,373, now priced at Rs298,353, marking a significant jump for the second consecutive day.
This dramatic spike follows Tuesday’s notable increase, where 10 grams of gold rose by Rs514 to Rs290,980, driven by a $6 uptick in the international market, bringing the global price to $3,224 per ounce. By Wednesday, the global bullion market saw an even sharper rise, with gold trading at $3,310 per ounce after a $46 increase. Analysts attribute this global and local rally to a mix of geopolitical tensions, inflationary pressures, and a weakening currency, which have bolstered gold’s appeal as a hedge against financial instability.
In Pakistan, the soaring prices have sparked mixed reactions. For investors and those with gold holdings, the surge is a boon, reinforcing gold’s role as a reliable store of value. However, for consumers planning weddings or purchasing jewelry, the record-high rates are a challenge, pushing many to delay purchases or opt for smaller quantities. Jewelers across major cities like Karachi, Lahore, and Islamabad report a dip in retail demand, though investment-grade gold bars and coins remain popular among savvy buyers.
The local market’s volatility mirrors global trends, where central banks and investors are increasingly turning to gold amid fears of economic slowdown and currency devaluation. Pakistan’s economic landscape, marked by high inflation and external debt pressures, further amplifies gold’s allure. “Gold is the ultimate insurance policy in times like these,” said a Karachi-based bullion trader, noting a steady stream of inquiries despite the steep prices.
As gold continues its upward trajectory, experts predict sustained demand in Pakistan, driven by both cultural affinity for the metal and its financial security. While short-term fluctuations are expected, the long-term outlook for gold remains robust, with global uncertainties showing no signs of abating. For now, Pakistan’s gold market stands as a testament to the metal’s enduring value in turbulent times.