Gold hits Rs260,200 per tola, price reaches record high

KARACHI: Gold prices surged by Rs2,500 per tola on Saturday, reaching a new all-time high in the local market, driven by a significant increase in international prices. This rise has further cemented gold’s status as a safe-haven asset amidst ongoing global uncertainties.

The All Sindh Saraf Jewellers Association reported that gold rates have now climbed to Rs260,200 per tola, marking another record high. Similarly, the price of 10-gram gold increased by Rs2,144, bringing it to Rs223,080.

In the international market, gold prices saw a sharp increase of $46, bringing the price to $2,507 per ounce. This marks a new peak in the global gold market, reflecting heightened demand as investors seek refuge in gold amid escalating geopolitical tensions and economic instability.

Silver, too, experienced a price hike, with rates rising by Rs50 to Rs2,950 per tola in the local market. The price of 10-gram silver rose by Rs42.86, reaching Rs2,529.14.

Despite fluctuations in precious metal prices, the local market continues to adjust its prices by a premium of $20 compared to international rates.

Local jewellers indicated that despite the significant rise in gold prices, rates in the domestic market were lowered by Rs4,500 per tola compared to international prices, taking into account the weakened purchasing power of consumers in the country.

This adjustment reflects the economic challenges faced by the local population, where high inflation and economic instability have reduced disposable incomes, making luxury purchases like gold jewellery less accessible.

Senior jewellers and market analysts attribute the continued rise in gold prices to ongoing geopolitical and economic issues worldwide.

The recent uptick is largely driven by escalating tensions in Europe and the Middle East, where conflicts and uncertainties have pushed investors towards safer investments like gold.

“Gold prices are on the rise globally, and the local market is no exception,” said one jeweller. “However, the demand for physical gold in the local market remains subdued. Instead, we see more people investing in raw gold or gold bars as a hedge against economic uncertainty.”

The jeweller also highlighted that sluggish demand for jewellery has had a significant impact on the industry, leading to job losses among artisans and craftsmen. “With fewer people buying jewellery, there is less work for our workers,” he noted.

The recent surge in gold prices is likely to continue as long as geopolitical tensions and economic uncertainties persist. Analysts believe that gold will remain a preferred asset for investors seeking stability and security in their portfolios, especially in these turbulent times.