KARACHI (Web Desk) – Pakistan’s gold market recorded another sharp increase on Friday as domestic bullion prices climbed in line with international trends, with investors turning to safe-haven assets amid heightened geopolitical tensions and uncertainty in global financial markets.
According to the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of 24-karat gold per tola increased by Rs3,000, reaching Rs430,436 compared with Rs427,436 a day earlier. The rise reflects continued strength in the international bullion market, where investors remained focused on developments affecting global economic stability.
The price of 10 grams of 24-karat gold also registered a notable increase. It climbed by Rs2,572 to settle at Rs369,029 against the previous rate of Rs366,457, maintaining the upward momentum witnessed in recent trading sessions.
International bullion prices also moved higher, with gold gaining $30 per ounce to reach $4,080 from the previous session’s $4,050. Market experts said renewed demand for safe-haven investments supported the rally as investors assessed geopolitical risks and their possible impact on inflation and economic growth.
Silver prices followed a similar trend in Pakistan. The price of silver per tola increased by Rs79, taking it to Rs6,294 from Rs6,215. Traders said silver continued to benefit from stronger international demand alongside gold.
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Bullion dealers attributed the latest increase primarily to uncertainty in global markets. Rising geopolitical tensions have encouraged investors to move capital into precious metals, traditionally considered reliable assets during periods of political instability and financial volatility.
Analysts said concerns over inflation, slowing economic growth and central bank policies continue to shape investor sentiment worldwide. Expectations regarding future interest rate decisions by major central banks remain among the most significant factors influencing gold prices.
Experts noted that gold usually performs well during uncertain economic conditions because it preserves value better than many other investment instruments. This characteristic continues to make it attractive for institutional and retail investors alike.
Despite the latest gains, market observers pointed out that gold has experienced considerable fluctuations over recent months. Price movements have largely depended on changing expectations regarding inflation, monetary policy and currency markets.
The US dollar also remains an important factor affecting bullion prices. A stronger dollar generally reduces demand for gold by making it more expensive for international buyers, while a weaker dollar often boosts purchases and supports higher prices.
Jewellers across Pakistan said consumer demand for jewellery has remained relatively slow due to record-high prices. However, investment demand continues to remain stable as many buyers view gold as a long-term store of wealth.
Market participants expect prices to remain volatile in the coming days as investors monitor developments in the Middle East, global inflation data and upcoming monetary policy announcements from major central banks.
Economic analysts believe geopolitical developments will continue to influence commodity markets. Escalating tensions in key regions could further strengthen demand for safe-haven assets, including gold and silver.
Oil prices also contributed to investor caution. Brent crude futures extended gains for a second consecutive session, rising to around $91.80 per barrel amid concerns that regional tensions could disrupt energy supplies and shipping routes.
Higher oil prices could increase inflationary pressures worldwide, indirectly supporting demand for precious metals. Investors often buy gold during inflationary periods because it is widely regarded as a hedge against declining purchasing power.
Bullion traders said domestic gold prices will continue to reflect movements in the international market as well as fluctuations in the rupee-dollar exchange rate. Any significant shift in either factor could lead to further changes in local prices.
Financial experts advised investors to remain cautious and avoid making decisions based solely on short-term market movements. They recommended closely monitoring global developments, economic indicators and central bank decisions before making investment choices.
With uncertainty continuing to dominate international markets, analysts believe gold will likely remain one of the preferred investment options for those seeking financial security. However, they warned that price swings may persist as geopolitical developments and economic data continue to shape investor confidence.
The precious metals market is therefore expected to remain active in the weeks ahead, with traders anticipating further volatility driven by international events and changing global economic conditions.
