The bullion market in Pakistan witnessed a significant surge on Tuesday, with gold prices climbing sharply and silver continuing its unprecedented rally to set new records. The price of gold experienced a substantial increase, while silver maintained its upward trajectory, reflecting strong investor interest and global market trends.
Precious Metals See Dramatic Price Hikes
According to data released by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of gold (24 carat) increased by Rs8,500 per tola. This brought the new price for a single tola of gold to Rs252,300. Similarly, the price for 10 grams of gold rose by Rs7,288, reaching a new level of Rs216,324.
The rally was not limited to gold. Silver, which has been on a remarkable run, extended its gains to hit a fresh all-time high. The price of silver surged by Rs100 per tola, settling at a record Rs3,050 per tola. The price for 10 grams of silver also increased by Rs85.74, reaching Rs2,614.79.
International Factors Drive Local Market Trends
The sharp rise in domestic prices was primarily driven by movements in the international market. Internationally, the price of gold increased by $35 per ounce, closing at $2,434. This global uptick directly influenced the local Karachi market, where prices are typically adjusted based on the dollar rate and international benchmarks.
Market analysts point to several factors contributing to the global strength in precious metals. These include ongoing geopolitical tensions, expectations of interest rate cuts by major central banks in the future, and a general demand for safe-haven assets among investors. The weakening of the US dollar against other currencies also made gold, which is priced in dollars, cheaper for holders of other currencies, boosting demand.
Impact on Consumers and Market Outlook
This sustained increase in the prices of gold and silver has a direct impact on consumers, particularly those looking to purchase jewellery for weddings and other ceremonies. Investors and savers who view gold as a hedge against inflation and currency devaluation are also closely monitoring these trends.
The record-breaking rally in silver is particularly noteworthy. Silver is both a precious metal and a key industrial commodity, used in electronics, solar panels, and various other industries. Its price is influenced by both investment demand and industrial consumption, making its current surge a significant market event.
Looking ahead, traders and the All Pakistan Sarafa Gems and Jewellers Association will continue to adjust local prices in line with global market fluctuations and the exchange rate of the Pakistani rupee against the US dollar. Market participants advise consumers and investors to stay informed about daily price updates, as the bullion market remains highly volatile and sensitive to international news and economic data.
