KARACHI: Gold prices soared by a staggering Rs7,800 per tola on Thursday in the local market, marking one of the largest single-day gains in recent months. The sharp increase, driven by a parallel surge in international markets, pushed gold rates to new all-time highs both locally and globally.

According to the All Pakistan Sarafa Gems and Jewellers Association, the price of gold reached Rs328,800 per tola, while the 10-gram rate jumped by Rs6,688 to Rs281,893. In the international market, gold prices surged by $78 per ounce, bringing the global rate to an unprecedented $3,118 per ounce. Analysts attribute the spike to mounting international economic uncertainty, a deepening global trade war and widespread currency devaluations.

Market observers noted that fears of an escalating global trade war, particularly between the US and China, along with volatile currency markets, have led investors to seek refuge in gold, a traditional safe-haven asset during times of crisis.

“The world is witnessing a new phase of economic tension,” said a bullion trader. “With multiple currencies losing value and major economies bracing for recessionary shocks, gold has become a more secure investment.”

Analysts say the recent policy shifts by the US government, including import tariffs, protectionist trade strategies and plans to bolster national gold reserves, have added to market anxiety. Meanwhile, emerging markets are facing pressure due to currency depreciation, which is further propelling demand for gold as a hedge against inflation and financial instability.

Silver prices also rose in the local market. The price of silver increased by Rs64 per tola to reach Rs3,234, while the 10-gram silver rate climbed by Rs55 to Rs2,772. With geopolitical risks mounting and central banks increasingly shifting their reserves toward precious metals, gold is expected to remain in the spotlight in the near term. Traders anticipate further volatility as global financial markets respond to rising tensions and economic policy shifts.