KARACHI: Gold prices in Pakistan witnessed a sharp increase on Wednesday, with the price of 24-karat gold soaring by Rs10,000 per tola in the local bullion market.
According to the All Pakistan Gems and Jewellers Association (APGJA), the price of one tola of gold climbed to Rs437,936 following the significant increase.
The association said the price of 10 grams of 24-karat gold also rose by Rs8,573, reaching Rs375,459.
The latest surge in domestic gold prices comes amid gains in the international bullion market, where gold climbed to a one-month high on the back of a weaker US dollar and shifting investor sentiment.
Meanwhile, silver prices also posted strong gains in both international and local markets.
In the international market, silver rose by $2.73 per ounce to $61.45 per ounce. Tracking the global trend, the local bullion market saw the price of one tola of silver increase by Rs273 to Rs6,624, while the price of 10 grams of silver climbed Rs235 to Rs5,679.
Gold has traditionally been regarded as a safe-haven investment, with its value typically rising during periods of inflation, political uncertainty and economic instability.
For centuries, gold has served as both a store of wealth and a form of currency. Investors often turn to the precious metal when confidence in other asset classes weakens, making it a preferred hedge against market volatility.
More read, Gold prices witness sharp decline in local markets
Last year, Pakistan revised its mechanism for determining domestic gold prices. Under the new formula, the local gold price is set at $20 per ounce above the prevailing international market rate, reflecting adjustments made by the country’s bullion pricing system.
