Gold prices surge in Pakistan as international rates climb

KARACHI: Gold prices recorded a significant increase in Pakistan on the fifth working day of the business week.

According to the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of gold rose by Rs5,700 per tola, reaching Rs460,262.

Similarly, the price of 10 grams of gold increased by Rs4,887, after which 10 grams of gold was traded at Rs394,600.

All-Pakistan Sarafa Gems and Jewellers Association sources said that the sharp rise came in response to an increase in prices in the international market.

In the international market, gold hovered close to the $4,500-per-ounce mark, supported by expectations of easier US monetary policy and persistent geopolitical tensions that have kept prices near record highs.

Spot gold touched a fresh all-time high of $4,497.55 during intraday trading.

The precious metal has surged over 70 per cent so far this year — its biggest annual rise since 1979 — fuelled by safe-haven buying, expectations of US interest rate cuts, continued central bank purchases, de-dollarisation trends and strong inflows into gold-backed exchange-traded funds (ETFs).

How investors are buying gold

Spot market

Large buyers and institutional investors purchase gold directly from major banks, with prices driven by real-time supply and demand. London remains the key global hub due to the London Bullion Market Association’s role in setting trading standards. Other major centres include China, India, the Middle East and the United States.

Futures market

Investors also gain exposure through gold futures contracts. COMEX in New York remains the largest gold futures exchange, while the Shanghai Futures Exchange and Tokyo Commodity Exchange are major players in Asia.

Exchange-Traded Products (ETPs/ETFs)

Gold ETFs allow investors to track gold prices without taking physical delivery. According to the World Gold Council, physically backed ETFs saw inflows of $64 billion up to October, including a record $17.3 billion in September.

Physical bars and coins

Retail buyers continue to invest through bars and coins sold by bullion dealers in stores and online platforms.

Investor interest and sentiment

Heightened participation of investment funds and market reactions to global developments have played a central role in bullion’s rally.

Currency movements

Gold traditionally moves inversely to the US dollar, as weakness in the greenback makes dollar-priced gold cheaper for holders of other currencies.

Monetary policy and geopolitical tensions

Lower interest rates reduce the opportunity cost of holding non-yielding gold. Ongoing global political frictions and uncertainty have reinforced its status as a safe-haven asset.

Central bank purchases

Central banks have continued to boost reserves amid economic and political risks. Global gold demand rose 3 per cent year-on-year to 1,313 tonnes in the third quarter of 2025, the highest quarterly level on record.

China also continued to add to its reserves for the 13th consecutive month, with holdings rising to 74.12 million fine troy ounces by the end of November.

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