KARACHI: Gold prices surged by Rs1,900 per tola on Tuesday in the local market, driven by an increase in the international market. The latest rise has pushed gold rates to new record highs both locally and globally.

The All Pakistan Sarafa Gems and Jewellers Association reported that gold rates reached Rs294,300 per tola, setting another historic benchmark.Similarly, the price of 10-gram gold increased by Rs1,629, bringing it to Rs252,314.

In the international market, gold rates rose by $16 to $2,815 per ounce. Local gold prices are typically adjusted with a premium of $20 over international rates.Silver prices also saw a notable rise. Silver rates increased by Rs49 to Rs3,314 per tola, while 10-gram silver prices rose by Rs42 to Rs2,841.

Market analysts attributed the unprecedented surge in gold prices to ongoing global economic uncertainties. One expert noted, “The gold market has been driven by fears and uncertainties following the Trump administration’s recent assumption of power in the United States. Investors are flocking to gold as a safe-haven asset amid financial instability.”

The soaring gold prices have had mixed effects on the local market. While some investors continue to buy raw gold as a hedge against inflation, jewellers are reporting declining sales due to the diminishing purchasing power of consumers.Experts are closely monitoring international developments and caution that unless geopolitical and economic conditions stabilise, the upward trend in gold prices may persist.