Gold prices hit record high in Pakistan as global rates surge

KARACAHI: The price of 24-carat gold climbed to a new all-time high of Rs472,862 per tola in the local market on Wednesday after rising by Rs2,000.

According to the All Pakistan Gems and Jewellers Association, the price of 10 grams of gold also touched a historic peak, increasing by Rs1,714 to Rs405,402. This came a day after 10-gram rates in Pakistan crossed the Rs400,000 mark for the first time in history. On Tuesday, 10 grams of gold surged by Rs7,288 to Rs403,688, while the per-tola price had jumped by Rs8,500 to nearly Rs471,000.

The price of silver per tola also increased by Rs500 to Rs7,705, while the price of 10 grams of silver rose by Rs428 to reach Rs6,605— the highest level so far.

In the international bullion market, gold prices rose by another $20 per ounce to a fresh record high of $4,505.

Amid expectations of further interest rate cuts by the US Federal Reserve in calendar year 2026 and rising geopolitical tensions, the prices of gold and silver in both international and local markets have been hitting fresh record highs on a daily basis.

Following the exceptional rise in international gold prices, interest in gold investment among ordinary citizens in Pakistan has also increased.

According to experts, gold has traditionally been considered a safe-haven asset, particularly at times of rising inflation, currency depreciation and global political uncertainty.

In recent days, international gold prices have surpassed 4,500 dollars per ounce, ranking among the highest levels in history.

According to global reports, major reasons behind the rise in gold prices include possible reductions in US interest rates, geopolitical conflicts, large-scale buying by central banks and the trend of diversifying away from the dollar.

Pakistani investors can invest in gold in several ways. The most common method is physical gold — purchasing gold biscuits, bars or coins, which are available in bullion markets and from certified jewellers across the country. Experts stress that when buying physical gold, it is essential to ensure pure 24-carat gold and an authentic receipt.

Another method is buying gold jewellery; however, experts caution that due to making charges and deductions, immediate profit margins are lower, so jewellery is considered more suitable for long-term holding or personal use.

Internationally, investors also invest through gold ETFs (exchange-traded funds), but this option is limited in Pakistan. Some Pakistani investors access gold funds or futures markets through overseas brokerage accounts; however, this involves higher risk and requires strong financial awareness.

Experts say the price of gold is directly linked with the value of the dollar, global political conditions and central bank policies. When interest rates fall, gold becomes more attractive because, although it does not yield interest, its value is preserved.

According to State Bank data, due to fluctuations in the value of the rupee, gold is increasingly being viewed as a strong asset in Pakistan. Economists suggest that instead of investing all money at once, a staggered buying strategy is safer when investing in gold.

They also advise that gold should be seen as a long-term investment rather than for short-term trading, especially for the middle class seeking to protect savings from inflation.