Gold prices hit historic highs both in Pakistan and globally on Monday, fueled by growing global tensions and falling currency values.
In Pakistan, gold surged by Rs8,100 per tola, reaching a record Rs357,800, as reported by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA). A few days earlier, gold had already soared near Rs350,000 per tola.
International gold prices also soared, climbing to $3,395 per ounce, up $69 in a single day. APGJSA President Muhammad Qasim Shikarpuri linked the sharp rise to “intensifying economic tensions” between the US and China.
“Gold has reached new heights, both locally and globally,” he noted, warning that neither country seems willing to back down, which could potentially trigger a global economic crisis. He also said, “The pace at which gold is rising, driven by tariff-related tensions, is causing currencies worldwide to depreciate.”
Locally, he added, Pakistan could face trouble maintaining its exchange rate. “If gold hits Rs450,000 per tola as expected within this month, managing the exchange rate will become increasingly difficult. A sudden spike in the rupee-dollar rate is a real possibility.”
Shikarpuri said any short-term correction in gold prices should be seen as a breather, not a reversal. “Unless the US and China engage in meaningful negotiations, gold prices are likely to climb further,” he explained.
Adding to the pressure is a tight supply in the local market. “Investor demand for gold remains strong, but the physical supply is limited. Buyers are active, but sellers are absent,” he said.
This imbalance could keep prices moving upward if international rates stay high. He also advised investors to hold onto their gold due to robust demand and low supply.
On the global front, gold topped $3,400 an ounce for the first time ever as the weakening US dollar and economic uncertainty pushed more investors toward the safe-haven asset. Spot gold rose 2.6% to $3,415.24 an ounce, with futures jumping 3% to $3,426.30.
Meanwhile, the Pakistani rupee slipped slightly against the US dollar, falling 0.05% to close at 280.87.
Globally, the dollar also weakened as investor confidence was shaken by President Trump’s comments hinting at possible changes in the Federal Reserve, raising concerns over its independence.