KARACHI: In a dramatic surge, gold prices in the local market rose by Rs5,300 per tola on Wednesday, setting a record-breaking high amidst global market shifts. The latest hike reflects a parallel increase in international gold prices.
The All Pakistan Sarafa Gems and Jewellers Association confirmed that gold rates reached Rs299,600 per tola, marking an unprecedented milestone in the domestic market. Similarly, the price of 10-gram gold jumped by Rs4,158, pushing it to Rs256,859.
The international market saw gold prices rise by $53 to $2,868 per ounce. Domestic gold prices are typically adjusted with a premium of $20 over international rates, impacting local buyers and investors.
According to a report by Bloomberg, there are indications of increased demand for gold as major dealers seek to shift metal to the US before any tariffs are imposed. One month so-called lease rates in London have jumped to about 4.7 per cent, far above previous levels of close to zero. The rate reflects the return that holders of bullion in London’s vaults can get by loaning their metal out to other buyers on a short-term basis.
Bloomberg last week reported that the rush for gold has led to weeks-long queues to withdraw bullion from the Bank of England — where many central banks around the world hold reserves — to deposit with private banks. Gold has also been flowing into depositories of New York’s Comex exchange.
Silver prices also saw an uptick, with rates increasing by Rs36 to Rs3,350 per tola. The price for 10-gram silver climbed by Rs31.08, settling at Rs2,872.08. The impact of soaring gold prices has been felt across the local market, with mixed reactions. While savvy investors continue purchasing raw gold as a shield against inflation, jewellers are facing plummeting sales as rising prices put gold ornaments out of reach for many consumers.
“It’s becoming difficult to maintain sales volume,” said a jeweller. “With prices skyrocketing, many customers are either postponing purchases or shifting towards lighter jewellery.” Economic experts warn that unless geopolitical tensions and financial instability in major economies ease, gold prices may continue their upward march. As stakeholders keep a close eye on international market trends, the local gold and silver markets remain on high alert, bracing for potential further fluctuations.
