KARACHI: Gold prices in Pakistan extended their record-breaking rally on Thursday, surging by Rs21,200 per tola to a fresh historic high as escalating geopolitical tensions in the Middle East and renewed war threats between the United States and Iran pushed global investors aggressively towards safe-haven assets.
According to the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of 24-carat gold climbed to Rs572,862 per tola. The rate for 10 grams rose by Rs18,175 to Rs491,136. Internationally, bullion prices jumped by $212 per ounce to $5,505, marking another all-time high in global markets.
The latest spike caps an extraordinary rally since the start of the year. On January 1, gold was trading at Rs454,562 per tola in Pakistan and $4,322 per ounce internationally. In just 29 days, local gold prices have climbed by Rs118,300 per tola, representing an increase of roughly 26 percent, one of the sharpest monthly rises in recent history. Traders say the pace of gains reflects deep anxiety in global financial markets.
Dealers link the surge primarily to intensifying tensions in the Middle East, where fears of a broader regional conflict have rattled investors. Speculation of direct confrontation between Washington and Tehran has added to uncertainty in oil markets, currencies and equities, pushing funds into precious metals. Analysts note that whenever geopolitical risks rise sharply, gold tends to attract heavy buying as a hedge against instability.
Muhammad Shafi Khan, a bullion dealer, told The News that domestic prices closely follow global trends with additional adjustments. He said that, besides geopolitical tensions, people were heavily investing in raw gold around the world as trust in currencies was declining. “Even central banks were buying large amounts of gold,” he said. “War threats and large demand have skyrocketed the prices.” He added that along with gold and silver, prices of other metals were also rising.
Gold prices in Pakistan are typically adjusted with a premium of around $20 per ounce over international rates, reflecting exchange rate movements, import costs and domestic market conditions.
Silver prices also climbed to record territory. The metal rose by Rs264 to Rs12,175 per tola, while the 10-gram rate increased by Rs227 to Rs10,438. Like gold, silver has benefited from safe-haven buying and speculative interest as investors reposition portfolios amid rising global risk.
Jewellers report mixed reactions from consumers. While investment demand remains strong, retail buyers are increasingly cautious as prices move further out of reach. Many customers are postponing wedding and seasonal purchases in the hope of a correction, though traders say current global conditions offer little sign of immediate relief.
Market participants expect continued volatility as geopolitical headlines drive sentiment. With tensions between the US and Iran showing no clear path to de-escalation and broader Middle East risks persisting, analysts warn that precious metals could remain elevated.
