The gold price in Pakistan reached an unprecedented level on Wednesday, crossing Rs500,000 per tola for the first time in history.
Market data showed a sharp increase of Rs12,700, bringing the gold price to Rs506,362 per tola. Similarly, 10 grams of gold rose by Rs10,888, reaching Rs444,123.
Adnan Agar, Director at Interactive Commodities, said that gold prices have surged over the past two days due to rising geopolitical uncertainty and strong central bank demand. He added that silver prices also trended higher.
Gold prices started climbing on Monday following remarks by US President Donald Trump over the weekend. Trump threatened new tariffs on Greenland and Europe while expressing his interest in acquiring Greenland.
Agar explained that these statements increased concerns about diplomatic friction between the United States and Europe. Investors moved towards safe-haven assets, pushing gold at higher prices.
Read more about the latest market trends in Pakistan’s Gold Prices Hit Record High Amid Global Market Volatility. This news covers daily price changes and factors driving gold and silver demand across the country.
“If the Greenland issue escalates, gold prices could rise even further,” Agar said. He added that until the situation is clarified, precious metal prices are likely to remain high.
Central banks are also driving gold demand. Agar noted that aggressive gold buying by central banks has continued even at record-high prices. This long-term trend has persisted for nearly two years and accelerated in 2025.
The global political and economic environment has contributed to this trend. Agar said tensions with traditional allies, including Mexico, Canada, Europe, and Venezuela, have created uncertainty. Pressure on Ukraine regarding a peace deal with Russia further weakens confidence in the US dollar.
As a result, gold has emerged as a credible alternative to the US dollar. Central banks are reducing dollar reserves and increasing gold holdings to hedge against inflation and currency depreciation.
The rise in Pakistan mirrors global trends. International gold prices recently hit $4,888.41 per ounce, while silver touched $95.89 per ounce. Strong demand for safe-haven metals is evident as global markets face uncertainty.
Domestic investors in Pakistan are closely monitoring these developments. The surge in gold prices is expected to affect jewelry sales, investment strategies, and import demand.
Market analysts warn that continued global uncertainty could push the gold price in Pakistan even higher in the coming days. Investors are advised to stay updated and make informed decisions.
