Gold Soars to Rs359,700 in Pakistan as Economic Uncertainty Drives Safe-Haven Demand

Gold prices in Pakistan surged on Monday, nearing an all-time high as local and global market forces continue to push investors toward the safety of precious metals. With domestic rates touching Rs359,700 per tola, the spike reflects both international price rallies and deepening concerns over the country’s economic trajectory.

The All Pakistan Sarafa Gems and Jewellers Association (APSGJA) confirmed that the price of 24-karat gold climbed to Rs359,700 per tola (approximately 11.66 grams), while the 10-gram rate reached Rs308,256. This puts the yellow metal just a step away from breaking previous national records. At the global level, gold prices are hovering around \$2,470 per ounce, bolstered by safe-haven demand amid ongoing global inflation pressures, geopolitical instability, and expectations of delayed interest rate cuts by the U.S. Federal Reserve.

In Pakistan, however, the situation is compounded by local factors—most notably the weakening Pakistani Rupee (PKR) and growing disillusionment with traditional investment avenues. With inflation still biting into household incomes and savings, gold continues to be viewed as a reliable hedge, especially in a climate of fiscal uncertainty and declining purchasing power.

“Every time the rupee slips or the stock market shakes, customers start buying gold again,” noted Bilal Ahmed, a jeweler based in Karachi. “Right now, we’re seeing both large and small investors move their cash into gold—just to protect value.”

Traders say the recent federal budget has done little to calm nerves. New tax policies, unclear monetary signals, and a widening current account deficit have further fueled capital flight from financial markets to physical commodities. Despite attempts by the State Bank of Pakistan (SBP) to stabilize the currency, confidence in mid-term economic policy remains fragile.

While gold dealers are witnessing increased activity, they warn that record-high prices could soon dampen consumer demand, particularly among middle-income households preparing for wedding season—a traditional period of high gold purchases.

The rising bullion rate reflects not just Pakistan’s internal vulnerabilities but also its growing exposure to global financial trends. If current patterns hold, analysts believe the Rs360,000 per tola barrier could be breached within days.

The question now is whether the government can implement meaningful reforms to restore investor confidence—or whether gold will remain the default refuge in an economy still searching for stability.