Gold Prices Surge in Pakistan for the Second Consecutive Day

Gold prices in Pakistan experienced a significant increase on Tuesday.

According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of the yellow metal per tola rose by Rs1,000 to Rs277,400, while the cost of 10 grams of gold increased by Rs858 to Rs237,826.

This follows a Rs2,000 rise per tola on the previous day.

The surge in local gold prices coincides with an increase in international gold rates, which reached $2,662 per ounce, marking a $10 rise from the previous day.

In contrast, silver prices remained stable at Rs3,400 per tola.

This trend reflects ongoing fluctuations in the global market, which significantly influence local pricing structures for precious metals in Pakistan.

Gold Prices Surge Amid Global Uncertainties

In recent weeks, gold prices have experienced a notable surge, driven by a confluence of factors that highlight the precious metal’s enduring appeal. Central banks around the world, particularly in emerging markets like China and Russia, have ramped up their gold purchases as part of a strategic shift away from U.S. dollar-denominated assets. This trend, often referred to as “de-dollarization,” has significantly bolstered demand for gold.

Geopolitical tensions also play a crucial role in this price increase. Ongoing conflicts in regions such as the Middle East and the war in Ukraine have heightened investor anxiety, prompting many to seek refuge in gold as a safe-haven asset. During times of instability, gold’s reputation as a reliable store of value becomes even more pronounced.

Adding to this dynamic is the expectation of interest rate cuts by the U.S. Federal Reserve. As rates decrease, the opportunity cost of holding non-yielding assets like gold diminishes, making it a more attractive investment option. Recent economic data from the U.S. has been mixed, with weak manufacturing figures juxtaposed against a resilient service sector, further fueling uncertainty and driving investors toward gold.

Finally, while demand surges, the supply of gold remains relatively stable due to consistent mining and recycling efforts. Additionally, rising industrial demand for gold in technology sectors, such as electric vehicles and robotics, supports its price.