Gold, silver at new highs on global rally

Yellow metal hits record Rs462,362/tola; international rate tops $4,400

KARACHI:

Gold prices in Pakistan surged to a fresh all-time high on Monday, mirroring a sharp rally in international markets driven by escalating geopolitical tensions and heightened safe-haven demand. Silver also climbed to an unprecedented level in the local market.

According to rates issued by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of gold rose by Rs6,200 per tola to settle at a record Rs462,362. Similarly, the price of 10-gram gold increased by Rs5,315 to Rs396,400.

APGJSA President Muhammad Qasim Shikarpuri said gold touched its highest-ever level in the domestic market on Monday. The latest surge follows Saturday's increase of Rs1,300 per tola to reach Rs456,162.

Internationally, spot gold jumped nearly 2% to around $4,421 per ounce by 09:43 am ET after touching the intra-day record of $4,428.92, as investors rushed towards safe-haven assets amid reports of rising US-Venezuela tensions and broader geopolitical uncertainty, according to Reuters.

Silver prices also rallied sharply at home, with the per-tola rate increasing by Rs218 to a new all-time high of Rs7,205.

Commenting on the global trend, Adnan Agar, Director at Interactive Commodities, said both gold and silver posted fresh record highs during the session. "Gold made a new all-time high around $4,430 and was still trading near that level. It opened close to $4,340, so it gained almost $100 in a single day," he noted, adding that silver also reached a new peak at $69.30 per ounce.

Agar said the precious metal market largely moved in one direction throughout 2025. "It has been one-way traffic – up, up, and up – for both gold and silver. Almost every month, four to five new highs are recorded," he said.

Looking ahead, Agar said market participants are increasingly discussing price targets in the $5,000-$5,500 range for gold, though uncertainty remains high. "Geopolitical developments, including reports of a possible escalation involving Israel and Iran, could further support gold and oil prices if tensions intensify," he added.

Meanwhile, the Pakistani rupee edged slightly higher against the US dollar, gaining 0.01% in the inter-bank market. By the close of trading, the local currency settled at 280.22, marking an improvement of Rs0.03 versus the greenback.

The rupee had also posted a modest gain in the previous week, appreciating by Rs0.06, or 0.02%, in inter-bank dealings. It ended the week at 280.25 compared with 280.31 a week earlier, as per data released by the State Bank of Pakistan.

In global currency markets, the Japanese yen remained under pressure, hovering near a record low against the euro on Monday. The weakness followed cautious remarks by Bank of Japan Governor Kazuo Ueda after the central bank's interest rate hike on Friday.

The yen was also trading close to an 11-month low against the US dollar and remained near a 17-month trough versus the Australian dollar.