Gold prices dip slightly after touching record high of Rs350,000 per tola

After scaling to an all-time high of Rs 350,000 per tola, gold prices have recorded a minimal fall of Rs300, and will not significantly change the affordability of the yellow metal.

While market rates differ significantly from the official rates provided by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), reports said that gold was currently trading as high as Rs360,300 per tola and Rs 308,900 per 10 grams.

As of publishing, international gold rates for one troy ounce sit at a respectable $3,328.30 across multiple digital exchanges. International bullion gold rates are priced significantly closer to the rate APGJSA has posted.

The difference in price could stem from traders charging a high premium to augment incomes. Some believe this to be plausible as gold traders and jewelers have witnessed a fall in the volume of sales in the past few months.

Over the last six months, gold prices have witnessed a meteoric rise, jumping from approximately $2,700 per troy ounce to $3,328 per troy ounce -- a 22.3 percent spike. With many unable to purchase gold, independent analysts believe a fall in domestic sales volume might be a contributing factor behind the high premiums.

Gold traders often charge “packing fees” among others, which causes the price of the commodity to rise in the domestic market. While the price of gold fluctuates rapidly, silver prices have remained largely undisturbed.

Silver rates sit at Rs3,414 for one-tola of 24k purity and have largely remained stable as the commodity remains insulated from bulk buying and selling by large investors in the global bullion market. The 10-gram rate for pure silver is Rs2,927.

Many believe that the reason behind the large swings in the price of gold could stem from gold’s status as the ultimate “safe haven asset”. Historically, in times of economic downturns, investors have preferred to park their funds in gold as it is a good store of value.

With economic uncertainty on the rise and analysts predicting a global recession, many believe that the price of gold has not hit its ceiling yet. Citing a number of factors, Goldman Sachs has revised its year-end 2025 gold price projection to $3,700 per troy ounce.

Prior to the revision, experts at Goldman Sachs had predicted that the price of gold would only reach $3,300 per troy ounce.