Gold prices in Pakistan reached an unprecedented level on Wednesday, reflecting the surge of the precious metal in international markets. The rise was largely fueled by expectations that the US Federal Reserve may ease interest rates later this month, following weaker-than-expected employment figures. With geopolitical tensions and global economic concerns intensifying, investors continued to turn to gold as a safe-haven asset, further strengthening its momentum.
According to the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of gold per tola in the local market surged by Rs6,000, settling at a record Rs376,700. Similarly, the rate for 10 grams increased by Rs5,144, closing at Rs322,959 — also marking the highest ever recorded level. This came after a relatively stable day on Tuesday when the per-tola price held steady at Rs370,700.
Globally, the yellow metal continued its record-breaking ascent as investors bet heavily on a forthcoming US interest rate cut. Spot gold rose 0.9% to $3,562.80 per ounce by 10:46 am EDT (1446 GMT), touching an all-time high of $3,565.57 before paring some gains. Analysts noted that the rally was reinforced by a combination of macroeconomic headwinds, geopolitical risks, and central bank policy expectations.
Interactive Commodities Director Adnan Agar described the ongoing surge as “very overextended.” He explained that gold touched a high of $3,567 and was last trading around $3,564 after earlier hitting a low of $3,526. Agar cautioned that a correction was likely if prices tested the $3,580–$3,600 zone, with a potential fallback into the $3,460–$3,500 range. He emphasized that upcoming US economic data releases would be critical in shaping the next phase of gold’s movement, especially if they temper expectations of aggressive monetary easing.
Market experts broadly agree that while gold’s long-term outlook remains strong due to global uncertainties and investor flight to safety, short-term volatility should not be ruled out. Any surprises in US labor, inflation, or consumer confidence data could trigger rapid adjustments in the market.
Meanwhile, global financial institutions are moving to modernize the way gold is traded. The World Gold Council, in collaboration with law firm Linklaters and consultancy Hilltop Walk Consulting, recently unveiled a framework for Pooled Gold Interests. This initiative allows investors to hold fractional ownership of physical gold stored in vaults, enabling more flexible trading, easier collateralization, and secure transfer of gold interests between parties. Analysts believe this model could increase efficiency and attract new categories of investors to the gold market, bridging traditional asset ownership with digital-era requirements.
In parallel, Pakistan’s currency market showed resilience, with the rupee continuing its upward streak against the US dollar. The local currency appreciated by 0.01% in the inter-bank market, closing at 281.71 per dollar compared to 281.72 a day earlier. This marked the rupee’s 19th consecutive session of gains, with a cumulative appreciation of 96 paisa against the greenback since August 6, 2025.
On the monetary front, the State Bank of Pakistan (SBP) raised Rs551.97 billion through the auction of government securities. The breakdown included Rs36.74 billion via 10-year Pakistan Investment Bonds – Floating Rate and Rs515.23 billion through Market Treasury Bills of three, six, and twelve months. Analysts see these moves as critical steps to manage liquidity while also offering investors safe investment instruments amid global economic uncertainty.
The simultaneous rise in gold prices, strengthening of the rupee, and SBP’s active debt management underscore the complex interplay of domestic and international economic factors shaping Pakistan’s financial outlook. For investors and policymakers alike, the challenge is balancing the immediate pressures of global volatility with strategies that ensure long-term financial stability.
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