Gold prices climb for fifth time this week in Pakistan

KARACHI: Gold prices in Pakistan climbed again on Saturday, the fifth rise this week, following a similar trend in international markets.

According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of 24-karat gold per tola reached Rs409,878 after an increase of Rs2,100 during the day. The price of 10 grammes of gold in Pakistan was quoted at Rs351,404, up by Rs1,801 compared to Friday when it stood at Rs407,778 per tola.

Internationally, gold maintained its upward momentum. The gold rate per ounce stood at $3,886 with a $20 premium, up $21 on the day.

Silver prices in the domestic market also edged higher, climbing Rs57 to reach Rs4,896 per tola.

A week of volatility

The bullion market has seen sharp fluctuations throughout the week. On Monday, gold soared to a record Rs403,600 per tola after a single-day jump of Rs5,900. Prices continued to rise on Tuesday and Wednesday, hitting Rs410,278 at midweek.

Thursday brought a correction, with prices slipping by Rs2,500 to Rs407,778. However, the decline was short-lived as the market stabilised on Friday before resuming its upward march on Saturday.

Global factors driving demand

The surge in global prices has been linked to political and economic uncertainties in the United States. Spot gold touched a record $3,896.49 per ounce on Thursday as investors sought safe-haven assets amid concerns over a government shutdown, which has already suspended key research, regulatory, and financial activities.

HSBC analysts noted that gold could trade above $4,000 an ounce in the near term, citing ongoing geopolitical risks, fiscal instability, and concerns about the independence of the Federal Reserve. The bank said rallies could continue into 2026, supported by central bank purchases and institutional demand.

Concerns over US economy

The political standoff in Washington has deepened fears over the health of the US economy. The Senate is expected to hold another vote on competing Democratic and Republican proposals to end the shutdown, now in its third day, though analysts doubt either plan will pass easily.

At the same time, worries have intensified over the Fed’s independence after reports that President Donald Trump tried to dismiss Governor Lisa Cook. Market observers fear political interference in monetary policy could fuel further volatility.

HSBC warned that if the Fed delivers fewer rate cuts than anticipated this year and next, it could temper the rally in gold prices. For now, however, demand for the metal remains strong, with both international and domestic markets showing resilience.

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