KARACHI: Gold prices rose by Rs1,600 per tola on Thursday in the local market, reaching new highs as international market trends continued to influence local rates.

According to the All Pakistan Sarafa Gems and Jewellers Association, gold rates climbed to Rs290,300 per tola, setting a new benchmark for the highest recorded price in the country.

Similarly, the price of 10-gram gold increased by Rs1,372, bringing it to Rs248,885. The consistent upward trend highlights the ripple effect of global market conditions on local pricing. In the international market, gold rates increased by $15, reaching $2,778 per ounce. The local market typically adjusts its rates by adding a premium of $20 over international prices.

Silver prices also saw a notable increase, rising by Rs59 to Rs3,450 per tola. The price of 10-gram silver followed suit, increasing by Rs50 to Rs2,957.

Analysts have attributed the recent surge in gold prices to global economic uncertainties following a government change in the United States. The political shift has led to heightened market volatility, prompting investors to seek refuge in gold, widely considered a safe-haven asset during periods of instability. “The ongoing uncertainty in global financial markets has led investors to hide their money in gold. The metal’s perceived stability during times of economic turbulence has made it an attractive investment option,” one market analyst explained.

However, the sharp rise in gold prices continues to pose challenges for the local jewellery market, where consumer purchasing power remains limited. The surge has dampened sales of gold jewellery, with buyers showing reluctance to make significant purchases amidst skyrocketing prices.

Despite these challenges, some investors are taking advantage of the gold market’s bullish trend by purchasing raw gold as a long-term investment.

Traders and market participants remain vigilant, closely monitoring global economic developments, which are expected to play a significant role in shaping future gold price trends. As prices edge closer to record levels, experts suggest that continued political and economic uncertainty could sustain the bullish momentum in the gold market.