Gold price increases by Rs1,100 per tola in local market

KARACHI: Gold prices in Pakistan saw a significant increase on the second trading day of 2025, following a rise in the international bullion market.

According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), which releases daily rates for the yellow metal, the price of 24-karat gold in the country rose by Rs1,100 per tola.

As a result of this increase, the price of gold now stands at Rs274,700 per tola in the local market. Meanwhile, despite the upward trend in gold, silver prices remained steady at Rs3,350 per tola.

Additionally, the price of 10-gramme gold saw an increase of Rs943, bringing the new price to Rs235,511.

In the international market, the price of gold also climbed on Thursday. As per the APGJSA, the global rate reached $2,635 per ounce, which includes a premium of $20, after gaining $11 during the day.

Gold prices rose on Thursday, extending gains from 2024 as investors weighed potential shifts in the US Federal Reserve’s interest rate outlook in the face of President-elect Donald Trump’s proposed tariffs and their likely impact on inflation.

Spot gold rose 0.6 per cent to $2,638 an ounce by 0930 GMT, having gained 0.7 per cent on the last trading day of 2024. US gold futures edged up by 0.4 per cent to $2,651.

“In my opinion, political and economic risks, non-dollar and yield-sensitive demand from de-dollarising central banks and investors seeking a hedge against fiscal instability, as well as sticky inflation, will support another year of gains for gold,” said Ole Hansen, head of commodity strategy at Saxo Bank.

In 2024 the Fed’s rate-easing cycle, robust central bank purchases and mounting geopolitical tensions propelled bullion to multiple record highs and a 27 per cent annual gain, its biggest since 2010.

“Over the next month the market will be focusing on new year flows from asset allocators and where they go, as well as Trump and more details about his policies, some of which are likely to end up being gold-friendly,” Hansen said, adding that a gold price target of $3,000 an ounce looks likely.

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