KARACHI: Gold prices in Pakistan surged to new record highs on Tuesday, with the domestic rate for one tola reaching Rs493,662 and 10 grams hitting Rs423,235, up Rs4,300 and Rs3,686 respectively, according to the All Pakistan Sarafa Gems and Jewellers Association (APSGJA).
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The rally in local prices follows a rise in the world gold market, which climbed $43 per ounce to $4,713, fueled by geopolitical tensions and safe-haven demand. Analysts say gold, traditionally a hedge against economic and political instability, rose 64 percent in 2025 and has gained another 10 percent since the start of 2026.
APSGJA President Qasim Shikarpuri noted that global investors, including those in Pakistan, have intensified gold purchases following US President Donald Trump’s announcement of tariffs on European countries. “Families are now polishing silver jewellery for weddings instead of buying gold due to rising domestic rates,” he added, highlighting the cooling demand for gold jewellery locally.
Experts also point out that the surge in local prices has made gold in Pakistan cheaper than Dubai rates by roughly Rs30,000 per tola, despite its record high. Market watchers attribute the rally to expectations of potential US interest rate cuts, which reduce the opportunity cost of holding non-yielding bullion.
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The sharp rise underscores gold’s continued appeal as a safe investment during times of uncertainty, as investors seek to protect wealth amid rising political and economic risks worldwide.