Pakistan’s domestic bullion market experienced a sharp upward trend on Monday as gold prices soared to record levels. Investors and jewelry buyers were met with a significant increase in the cost of the precious metal, reflecting the volatility in international commodity markets.
Massive Jump in Local Gold Rates
According to the latest data released by the All Pakistan Sarafa Gems and Jewellers Association, the price of 24-karat gold per tola increased by a staggering 5,300 PKR. This hike has pushed the total price to 524,762 PKR. The sudden shift has caused concern among local consumers, especially those preparing for the wedding season where gold demand typically peaks. Similarly, the price for 10 grams of 24-karat gold saw a substantial rise. The rates climbed by 4,165 PKR, bringing the new market price to 412,421 PKR. Industry experts suggest that the local market is reacting directly to the shifts in the global economic landscape and the strengthening of gold as a preferred investment tool.
Global Market Influence
The domestic price hike is a direct consequence of the rising value of gold in the international market. On Monday, the global price of gold increased by 53 USD per ounce. This surge brought the international rate to 5,020 USD per ounce. These figures, confirmed via reports from the All Pakistan Sarafa Gems and Jewellers Association, highlight the intense pressure on the local market as international buyers seek security in precious metals.
Silver Prices Also on the Rise
It was not just gold that saw a price revision; the silver market also followed the bullish trend. The price of silver per tola increased by 346 PKR, reaching a new high of 8,615 PKR. Furthermore, the rate for 10 grams of silver rose by 296 PKR, settling at 7,385 PKR. This synchronized rise in both gold and silver prices indicates a broader trend of inflation affecting the commodities sector.
Market Sentiment and Future Outlook
Market analysts believe that the current trend is driven by international economic uncertainty and shifting fiscal policies. As global investors move toward precious metals to hedge against inflation and currency fluctuations, local markets in Pakistan are feeling the heat. This sharp increase is expected to impact the purchasing power of the middle class and could lead to a temporary slowdown in the local jewelry manufacturing sector as buyers wait for prices to stabilize.