Gold prices rose by Rs600 per tola in the local market on Thursday, tracking an upward trend in international rates. According to the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of 24-karat gold climbed to Rs435,036 per tola.
Similarly, the price of 10-gram gold increased by Rs515 to reach Rs372,973. Market analysts suggest that the ongoing volatility in the global economic landscape continues to drive investors toward precious metals as a safe-haven asset, impacting domestic retail prices significantly.
In the international market, gold gained $6 to reach $4,125 per ounce. Bullion dealers noted that domestic prices are adjusted with a premium of approximately $20 per ounce over international rates, reflecting exchange rate fluctuations, import costs, and local market dynamics.
The local bullion market has been experiencing frequent adjustments over the past few weeks. Traders emphasize that the correlation between the Pakistani Rupee and the US Dollar remains a critical factor in determining the final cost for consumers across the country.
Conversely, silver prices saw a downward trend during the same period. The price of silver fell by Rs120 to Rs6,368 per tola, while the price of 10-gram silver dropped by Rs103 to Rs5,459.
Market experts advise consumers to keep a close watch on the daily fluctuations, as the precious metals sector remains highly sensitive to geopolitical developments and central bank policies globally. The APSGJA continues to monitor these changes closely to ensure transparency in the pricing mechanism for jewelers and retail customers alike.
As the fiscal year progresses, the demand for gold in the local market is expected to remain steady despite the price hikes. Investors are currently weighing the risks of inflation against the rising costs of gold.
While the current surge poses challenges for traditional buyers, the long-term outlook for gold remains bullish according to several financial analysts. The government's economic team is also observing these trends, as the import of precious metals impacts the country's foreign exchange reserves.
Maintaining a balance between local demand and import sustainability remains a priority for the financial authorities. As of Thursday evening, the market closed with a cautious sentiment among traders, who anticipate further adjustments in the coming days based on the closing figures of the international commodity exchanges.