The gold market in Pakistan saw a significant surge on Tuesday, driven by rising international prices and economic uncertainties. The price of gold per tola skyrocketed by Rs4,800, reaching an all-time high of Rs306,300 in the local market. Similarly, the price of 10-gram gold increased by Rs4,115, bringing it to Rs262,602, as reported by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA).

This increase follows a previous hike of Rs1,500 per tola on Monday, highlighting a consistent upward trend in the market.

Gold Prices Surge Globally

The global bullion market mirrored this upward momentum, with international gold prices rising to $2,916 per ounce, reflecting a $47 increase. The market saw strong performance throughout the day, with gold touching a high of $2,828 before settling at $2,801, according to Interactive Commodities Director Adnan Agar.

Reasons Behind the Price Hike

Several factors have contributed to the soaring gold prices:
Economic Tensions – The ongoing US tariffs on China, Europe, Canada, and Mexico have increased economic uncertainty, pushing investors toward gold as a safe-haven asset.
Geopolitical Instability – The halt of US military aid to Ukraine has also played a role in driving gold demand.
Market Speculation – Experts believe that while gold prices have room for growth, potential downward corrections may occur. The market’s closing trends will be critical in determining future price movements.

Adnan Agar suggests that if prices decline, the market may stabilize within the $2,770-$2,780 range in the coming days.

Pakistani Rupee Declines Slightly Against the Dollar

While gold prices surged, the Pakistani rupee faced a minor setback against the US dollar in the inter-bank market. The rupee depreciated by 0.04%, standing at 279.77 per dollar after losing 10 paisa.

Last week, the rupee had also weakened by 10 paisa, closing at 279.67 compared to 279.57 in the previous week, according to data from the State Bank of Pakistan. The currency fluctuation reflects ongoing economic challenges and market pressures.

What’s Next for Investors?

Gold’s rising trend has sparked interest among investors and traders. However, experts caution that price corrections could occur, making it essential for investors to keep an eye on global economic trends. If the geopolitical situation stabilizes, gold prices may return to previous levels.

For those considering investments, gold remains a strong asset for hedging against inflation and economic uncertainty. Keep watching the market for potential buying opportunities.