Gold prices in Pakistan surged dramatically on Monday, marking a historic milestone as the per tola rate broke past Rs 400,000 for the first time. The new benchmark stands at Rs 403,600, up by Rs 5,900. Meanwhile, the price for 10 grams of gold climbed to Rs 346,021, rising by Rs 5,058.
Market Dynamics and Investor Sentiment
Analysts and local traders are attributing the steep ascent in gold prices to a mix of global and domestic uncertainties. In troubled times, gold often serves as a “safe-haven” asset, driving heightened demand from cautious investors. However, jewelers report that retail demand is weakening — many ordinary buyers are hesitating in the face of such steep rates.
Because gold in Pakistan is directly tied to global bullion trends and exchange rate shifts, changes abroad or fluctuations in the Pakistani rupee quickly reflect in local prices. A weakening rupee or stronger international gold prices push costs higher here almost immediately.
What’s Behind the Surge & What It Means
Several factors are at play behind this record high:
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Global gold price momentum: Bullion markets overseas have been pushing upward, increasing the base cost for imports.
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Rupee depreciation: A weaker local currency makes imported gold more expensive in rupee terms.
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Uncertainty and inflation: Investors often turn to gold as protection during inflationary or unstable periods.
While the surge might benefit gold holders or traders, for many consumers the higher rate places gold out of reach. Jewellery demand, a key driver in the domestic market, is expected to decline further unless prices ease.
In short, gold’s new heights reflect broader economic stress and shifting investor behavior. Whether the price will sustain or correct remains to be seen, especially as global trends and rupee strength evolve.
