Gold surges past Rs532,000 on global rally

Silver rockets 15% in one day, outshines yellow metal in international market

KARACHI:

Gold prices in Pakistan surged to another historic high above Rs532,000 on Monday, mirroring a powerful rally in international markets where bullion climbed above $5,100 per ounce, driven by safe-haven demand amid escalating geopolitical tensions and currency volatility.

In the domestic market, the price of gold per tola rose by Rs10,900 to reach a new record at Rs532,062, according to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA). Similarly, the price of 10-gram gold increased by Rs9,345 to Rs456,157.

The latest surge follows another strong session on Saturday, when gold per tola gained Rs6,500 to close at Rs521,162, indicating sustained bullish momentum in the local bullion market.

Market participants attributed the sharp rally to strong international cues, as global investors increasingly moved towards precious metals as a hedge against geopolitical risk, currency instability, and macroeconomic uncertainty.

In international markets, spot gold surged past the psychological $5,000-per-ounce mark, buoyed by strong safe-haven flows amid renewed political tensions involving Greenland and Iran, weakness in the US dollar, and heightened volatility in global currency markets, particularly sharp and disorderly movements in the Japanese yen.

According to market data, spot gold was up 1.9% at $5,076.43 an ounce by 11:37 am ET, after touching a record intra-day high of $5,110.50. Meanwhile, US gold futures for February delivery also gained 1.9% to $5,074.10. On a year-to-date basis, spot gold is up around 18%, reflecting sustained investor demand for hard assets amid inflation risks, geopolitical uncertainty, and concerns over global financial stability.

Other precious metals also followed the bullish trend. Spot silver climbed to a record peak of $113.61 per ounce, while platinum also scaled all-time highs in global trading.

In Pakistan's market, silver prices moved higher. The price of silver per tola increased by Rs627 to reach Rs11,428, reflecting strong global price transmission into the domestic market. Adding to the bullish sentiment, global investment bank Societe Generale projected that gold could climb as high as $6,000 per ounce by the end of the year, citing continuous central bank buying, geopolitical risk premiums, currency instability, and structurally strong investor demand for safe-haven assets. Adnan Agar, Director at Interactive Commodities, said gold hit a high of $5,110 on Monday and was later trading around $5,085, up from Friday's close at $4,987. Silver, however, has seen a spectacular surge, rising $11 to $114 per ounce, gaining nearly 15% in a single day, drawing more attention than gold in the market.

Meanwhile, the Pakistani rupee edged slightly higher against the US dollar in the inter-bank market. It ended the session at 279.85, marking a slight increase of Rs0.01 against the greenback.