Gold prices rise Rs500 per tola to all-time high

KARACHI: Gold prices surged by Rs500 per tola on Monday in the local market, reaching a record high as rates also climbed in the international market. This increase has driven both local and global gold prices to unprecedented levels.

According to the All Sindh Saraf Jewellers Association, gold prices now stand at Rs282,300 per tola in Pakistan. The price of 10-gram gold also rose by Rs429, bringing it to Rs242,027.In the international market, gold rates increased by $5 to $2,726 per ounce, marking an all-time high.

The rise in international prices has been attributed to the ongoing geopolitical tensions, particularly the conflict in the Middle East, which has pushed investors towards gold as a safe-haven asset. The upcoming US elections and recent interest rate cuts by US and European authorities have fuelled the global gold price surge.

While gold continues to climb, silver prices remained steady in the local market. Silver rates stood at Rs3,150 per tola, with 10-gram silver prices unchanged at Rs2,700.62.Local jewellers explained that the sharp rise in international prices directly influenced the local market.

“The international market is driving prices up, and we’re feeling that impact here,” said a local goldsmith. However, the increased rates have led to a significant reduction in trade volume.“Due to unaffordable gold prices, trade in the local market has decreased dramatically. Only about 5-10 per cent of normal activity remains,” said one jeweller.

“The few customers we see now are those who can afford these high rates, and their numbers are very low.”As prices continue to rise, analysts believe gold will remain a preferred investment for those seeking stability amidst global economic and political uncertainty.