Gold prices surged by Rs13,900 per tola in the local market on Wednesday, tracking a sharp increase in international bullion rates, according to the All Pakistan Sarafa Gems and Jewellers Association. The price of 24-karat gold rose to Rs426,036 per tola, while the rate for 10 grams increased by Rs11,917 to Rs365,257.

In the international market, gold prices climbed by $139 to reach $4,035 per ounce, driving the increase in domestic rates. Local gold prices are generally adjusted against international rates after incorporating a premium of around $20 per ounce.

Movements in international bullion prices therefore have a direct bearing on domestic gold rates. Industry experts note that global economic uncertainties continue to drive investors towards safe-haven assets, with precious metals experiencing renewed buying interest across major financial centers.

Domestic bullion traders and investors closely monitor currency exchange fluctuations, particularly the parity between the US dollar and the Pakistani rupee, as these factors significantly influence import costs and local pricing structures. Silver prices also recorded a notable increase in the local market alongside gold.

The rate of silver rose by Rs295 to Rs5,663 per tola, while the price of 10 grams increased by Rs235 to Rs4,855. Market analysts suggest that retail demand often fluctuates during periods of sudden price spikes, with buyers adopting a cautious approach.

Jewelers report that high valuations tend to slow down wedding-season purchases, forcing consumers to opt for lighter ornaments or alternative investments. The All Pakistan Sarafa Gems and Jewellers Association continues to issue daily rate sheets reflecting global market shifts to maintain transparency for consumers and commercial dealers across all major cities of Pakistan.

As global inflationary pressures persist, financial observers anticipate that precious metal markets will remain volatile in the near term, keeping both retail buyers and institutional investors on high alert.