Gold prices in Pakistan surged to a new all-time high on Monday, tracking a sharp rally in the international market, where the precious metal touched record levels amid renewed safe-haven demand.
According to the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of gold rose by Rs5,500 per tola to settle at Rs428,200, while 10-gram gold was sold at Rs367,112, up by Rs4,715.
The rally follows a weekend increase, when the yellow metal climbed Rs2,100 per tola to close at Rs422,700 on Saturday.
In the global market, gold prices scaled to another record high of $4,071 per ounce (including a $20 premium), gaining $55 on the day. Analysts attributed the spike to renewed US-China trade tensions after President Trump revived tariff threats against Beijing, alongside growing expectations of US interest rate cuts, which enhanced gold's appeal as a non-yielding asset.
Silver prices also mirrored gold's rally, reaching an all-time high of Rs5,247 per tola, up Rs147 from the previous session.
Market observers said both metals are likely to remain volatile in the near term, driven by geopolitical uncertainty and shifting expectations around US monetary policy.
Spot gold was up 1.4% to $4,075.24 per ounce as of 1033 GMT, after hitting a record high of $4,079.70, according to Reuters. US gold futures for December delivery surged 2.4% to $4,094.70.
Interactive Commodities Director Adnan Agar said that gold prices continue to remain bullish, with the metal maintaining a strong momentum. "Gold is still up – it hit around $4,105 and is holding firm near $4,100. The trend remains upward," he noted.
Agar attributed the continued rally to the lack of fresh US economic data and the US government shutdown, which have contributed to increased safe-haven demand.
"These factors have given prices a clear upward direction. In the coming days, it will depend on whether the shutdown ends or new economic data is released, which could trigger profit-taking or a correction," he added. "But for now, gold has taken a single upward path."
Moreover, Bank of America Global Research on Monday raised its price forecasts for precious metals, lifting the 2026 outlook for gold to $5,000 per ounce, with an average of around $4,400.
The bank sees the risk of a near-term correction, but still expects further upside in 2026. "Looking into 2026, a 14% increase in investment demand – similar to what we have seen this year – could lift gold to $5,000/oz," the bank noted.
Meanwhile, the Pakistani rupee registered a slight appreciation against the US dollar in the inter-bank market on Monday. According to data released by the State Bank of Pakistan (SBP), the local currency closed at Rs281.16 per dollar, gaining Rs0.01 from the previous session's close at Rs281.17.
Last week, the rupee had recorded a modest weekly advance, rising Rs0.09, or 0.03%, against the greenback in the inter-bank market.
In global currency markets, the US dollar rebounded from early losses as investors anticipated that Washington might ease the latest trade tensions with Beijing. Meanwhile, political uncertainty in France and Japan weighed on the euro and yen, supporting the dollar's recovery.
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