Gold prices rally regains momentum after temporary pullback

KARACHI: Gold prices surged to record highs in Pakistan on Thursday, extending a sharp rally for the second consecutive day amid strong global momentum and heightened investor demand for safe-haven assets.

According to market sources, the price of gold rose by Rs14,800 per tola on Thursday, pushing the rate to an all-time high of Rs529,162 per tola. Over the last two trading sessions, gold has gained Rs38,800 per tola, reflecting extraordinary volatility in the precious metals market.

Similarly, the price of 10 grams of gold increased by Rs12,689, taking it to Rs453,671, underscoring the intensity of the upward trend in the domestic bullion market.

The surge mirrors developments in the international market, where gold prices climbed sharply amid global economic uncertainty. Over the past two days, gold has gained $388 per ounce, once again breaching the critical $5,000 per ounce threshold. On Thursday alone, the price rose by $148, reaching approximately $5,064 per ounce.

Market analysts attribute the rally to increased demand for safe-haven assets, persistent geopolitical risks, expectations of easing monetary policy in major economies, and continued weakness in global currencies. Investors have also been shifting capital into gold to hedge against inflation and market instability.

Silver prices followed a similar upward trajectory. In the local market, silver became costlier by Rs109 per tola, with prices rising to Rs9,255 per tola, supported by both industrial demand and investor interest.

Analysts caution that while the long-term outlook for gold remains positive, short-term volatility is likely to persist as global financial markets react to economic data and policy signals.