Gold maintains record-breaking streak, hits highest-ever price of Rs263,700 per tola

Gold prices in Pakistan soared to unprecedented levels on Saturday, reflecting a continued upward trend driven by rising international rates.

In the local market, the price of gold per tola (approximately 11.66 grammes) surged by Rs1,700, reaching a new record high of Rs263,700.

This significant increase underscores the precious metal’s enduring appeal as a safe haven amid global economic uncertainties.

The price of 10-gramme gold, a popular metric among consumers, also saw a substantial rise, climbing by Rs1,457 to settle at Rs226,080, according to the latest data released by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA).

These sharp increases come on the back of a minor gain of Rs200 recorded on Friday, when the price per tola stood at Rs262,000.

The surge in domestic gold prices is largely attributed to a parallel increase in international rates. On Saturday, the international price of gold rose by $20 (PKR 5,526), bringing it to $2,512 (PKR 694,169) per ounce, inclusive of a premium of $20.

The upward trajectory of gold prices on the global stage is driven by a combination of factors, including persistent inflation concerns, geopolitical tensions, and fluctuating currency values.

As investors seek refuge in the stability of gold, demand for the precious metal continues to push prices higher, with ripple effects felt across markets worldwide, including Pakistan.

Silver rate in Pakistan

While gold prices surged, silver remained stable in the local market. The price of silver per tola held firm at Rs2,950, showing no change from the previous sessions.

Despite its status as a precious metal, silver has not experienced the same level of price volatility as gold, largely due to differing market dynamics and industrial demand.

Week in review: Gold’s record-breaking streak

This week has been particularly eventful for gold prices in Pakistan, marked by consistent daily increases that have culminated in Saturday’s record-breaking levels.

Monday: The week began with a slight dip in gold prices, following a record high in the previous session. The price of 24-karat gold fell by Rs200, settling at Rs260,000 per tola. Interestingly, even with this decrease, the price remained Rs4,000 below its actual market value, indicating underlying bullish sentiment.

Tuesday: Gold prices rebounded sharply on Tuesday, reaching a new record high. The price per tola increased by Rs700, bringing it to Rs260,700. This surge mirrored an uptick in international rates, reinforcing the connection between local and global market trends.

Wednesday: The upward momentum continued on Wednesday, with gold prices in Pakistan reaching another new record. The price of 24-karat gold per tola rose by Rs300, setting a new high at Rs261,000.

This marked the third record-breaking price level within the month, highlighting the sustained demand for gold.

Thursday: On Thursday, gold prices soared to an all-time high of Rs261,800 per tola, following an increase of Rs800. Despite this, the price was still Rs3,000 below its estimated market value, suggesting that the metal’s true worth is yet to be fully reflected in the market.

Friday: The upward trajectory of gold prices continued for the fourth consecutive day on Friday, with the price per tola reaching Rs262,000 after a modest increase of Rs200. This marked the highest price ever recorded for gold in Pakistan, setting the stage for Saturday’s further escalation.

Implications for consumers and investors

The relentless rise in gold prices has significant implications for both consumers and investors in Pakistan. For those who have invested in gold, the ongoing price surge represents a substantial return on investment, particularly for those who purchased the metal when prices were lower.

However, for consumers looking to buy gold for personal use, such as jewellery or gifts, the soaring prices are increasingly prohibitive. The current levels have made gold almost out of reach for many, particularly in a country where gold is deeply embedded in cultural traditions and ceremonies.

This price hike is a double-edged sword—beneficial for investors but challenging for those with other intentions. The persistent rise in gold prices may push consumers to explore alternative options, while investors continue to benefit from the metal’s role as a hedge against economic instability.

Gold’s record-breaking streak in Pakistan, fuelled by global market dynamics, highlights the precious metal’s enduring value and the challenges it poses for local consumers.

As the international market remains volatile, the question remains whether gold prices will continue to rise or if a correction is on the horizon. For now, the allure of gold remains as strong as ever, both as an investment and a symbol of wealth.