Gold hits historic Rs338,800/tola in Pakistan after record Rs10,000 surge

Pakistan witnessed an unprecedented spike in gold prices on Friday, with 24-karat gold hitting an all-time high of Rs338,800 per tola, marking a record single-day increase of Rs10,000, according to data released by the All-Pakistan Gems and Jewelers Sarafa Association (APGJSA).

Similarly, 24-karat gold per 10-gram surged by Rs8,573, reaching Rs290,466—another record jump in a single day. Meanwhile, 22-karat gold per 10-gram climbed to Rs266,261.

This historic increase comes amid rising global gold prices, which have been driven by a combination of a weakening U.S. dollar, heightened recession fears, and increased demand for safe-haven assets. On Friday, spot gold traded near $3,211 per ounce, up by $22.5 or 0.71%, surpassing the key psychological threshold for the first time.

In contrast, silver prices remained unchanged in Pakistan, with 24-karat silver priced at Rs3,234 per tola and Rs2,772 per 10-gram.

Globally, investors are turning to gold as a hedge against inflation and geopolitical instability. Alexander Zumpfe, a trader at Heraeus Metals Germany, noted that “recession risks are mounting, bond yields are soaring, and the U.S. dollar continues to weaken—all factors reinforcing gold's role as a crisis hedge.”

Despite a temporary pause by U.S. President Donald Trump on new tariffs, the trade war has escalated, adding to investor anxiety and further weakening the dollar, which in turn has boosted gold demand worldwide.

Gold prices have soared nearly 21% year-to-date, buoyed by inflows into gold-backed ETFs, central bank purchases, and fears of prolonged economic instability. UBS analyst Giovanni Staunovo projected gold could reach $3,400 to $3,500 per ounce in the coming months.

Meanwhile, U.S. inflation data for March showed an unexpected dip in consumer prices, prompting increased speculation of a Federal Reserve rate cut as early as June, with expectations of a full percentage-point reduction by the end of 2025.