Islamabad, Jan 21 (ABC): Gold prices surged to a historic high in Pakistan on Wednesday, crossing the Rs5 lakh level for the first time amid a sharp rally in the international bullion market and rising global uncertainty.
According to the All Pakistan Sarafa, Gems and Jewellers Association, the price of gold per tola rose by Rs12,700 to Rs506,362, marking an all-time high in the domestic market. The price of 10 grams of 24-karat gold also increased by Rs10,888 to Rs434,123.
Silver prices followed the upward trend. The price of 24-karat silver per tola increased by Rs64 to Rs9,933, reflecting strong demand in both local and global markets.
In the international market, gold jumped by $127 to $4,840 per ounce as escalating geopolitical tensions drove investors toward safe-haven assets. Silver also reached a new milestone, breaking above $95 per ounce for the first time.
Commenting on the rally, Fawad Razaqzada, a market analyst at City Index and FOREX.com, said gold has moved deeper into uncharted territory as investors seek protection against rising political risks. He added that a weaker US dollar has provided additional support to precious metals, strengthening gold’s momentum at a time when confidence in US assets appears to be under pressure.
The surge in prices comes ahead of former US President Donald Trump’s expected meeting with global business leaders on the sidelines of the World Economic Forum in Davos. At the same time, the US dollar recorded its biggest single-day decline in more than a month, making dollar-denominated gold cheaper for international buyers.
Market analysts said the outlook for gold remains positive amid global economic uncertainty and sustained demand for safe-haven assets. They noted that gold’s limited supply, intrinsic value, and historical independence from government and central bank policies continue to make it an effective hedge against inflation, currency depreciation, and broader economic instability.
Gold is widely viewed as a reliable store of value during periods of economic stress, as it tends to preserve purchasing power when paper currencies weaken. Its strong performance during times of geopolitical tension further reinforces its status as a preferred safe-haven asset for investors worldwide.