Gold, silver touch historic peaks in Pakistan amid global uncertainty

KARACHI: Gold prices in Pakistan surged to unprecedented levels on Thursday, extending their upward momentum as escalating global tensions drove investors toward traditional safe-haven assets.

Data released by the Sarafa Association shows that the price of gold jumped sharply by Rs 21,200 per tola, pushing it to a new all-time high of Rs 572,862. Similarly, the rate for 10 grams of gold rose by Rs 18,175, reaching a record Rs 491,136.

The rally in the domestic bullion market mirrors developments in international markets, where gold prices climbed by $212 per ounce to settle at $5,504, reflecting heightened risk aversion among investors.

Just a day earlier, gold had already crossed the Rs550,000 per tola milestone for the first time in Pakistan’s history. On Wednesday, the precious metal gained Rs 21,100 to close at Rs 551,662 per tola, while the 10-gram rate increased by Rs 18,090 to Rs 472,961.

Silver prices followed a similar upward trajectory. The per tola price of silver increased by Rs 264 to stand at Rs 12,175, while the price of 10 grams climbed by Rs 227, reaching Rs 10,438.

STOCK MARKET SLIDES SHARPLY

Meanwhile, the Pakistan Stock Exchange witnessed heavy selling pressure, with the benchmark KSE-100 Index plunging more than 6,000 points amid growing geopolitical concerns. The index fell by 6,419 points to close at 181,961, down from the previous session’s 188,380.38 points, as investors moved to book profits and reduce exposure.

Market sentiment weakened further following reports of intensifying tensions between the United States and Iran, particularly after the deployment of a US aircraft carrier strike group, led by the USS Abraham Lincoln, into Middle Eastern waters.

Analysts say continued geopolitical instability could keep pressure on equity markets while sustaining demand for precious metals in the near term.