Gold price in Pakistan reaches new high, rises by Rs5,500 per tola

Karachi: After the increase in the price of gold in the global market, gold in Pakistan also reached the highest level in history. On Monday, the price of gold per tola in the local bullion market increased by Rs5,500, setting the new price at Rs428,200. This is the highest price in the country’s history so far.

According to the All Pakistan Gems and Jewelers Bullion Association, 10 grams of gold was sold for Rs367,112 after an increase of Rs4,715. On Saturday, the price of gold per tola also increased by Rs2,100, reaching Rs 422,700.

Gold also reached a new high in the global market on Monday.

According to the association, gold in the global market rose by $55 to $ 4,071 per ounce (with a $20 premium). Along with this, the price of silver also reached a new historical high, which increased by Rs147 per tola to Rs5,247.

This increase in the price of gold at the global level was seen due to the expected reduction in interest rates by the US Federal Reserve and the increase in US-China trade tensions. According to the report, spot gold is currently trading at $4,44.29 per ounce with an increase of 0.7 percent, while it had touched a high of $4,59.30 at the beginning of the day.

On the other hand, US gold (futures contract for December) rose by 1.6 percent to $4,62.50 per ounce. According to experts, the trend of investors towards safe haven investments at the international level has taken the prices of both gold and silver to new heights.

Gold soared to a record high on Monday, lifted by safe-haven demand amid renewed US-China trade tensions and expectations of US Federal Reserve interest rate cuts, while silver also surged to an all-time high.

Spot gold was up 0.7% at $4,044.29 per ounce, as of 0253 GMT, after hitting a record high of $4,059.30 earlier in the session.

US gold futures for December delivery rose 1.6% to $4,062.50.

US President Donald Trump on Friday imposed 100% tariffs on Chinese goods to the United States and announced new export controls on critical software effective November 1 in response to China’s curbs on rare earth elements and equipment, which Beijing defended on Sunday as justified while stopping short of imposing additional levies on US goods.

“It’s interesting because developments in the Middle East recently had been a diminished tailwind for the gold market, but now we’ve got this reemergence of risks due to inflamed trade tensions between the US and China,” Capital.com analyst Kyle Rodda said.

Spot silver jumped 2% to a record high of $51.52/oz, driven by similar factors as gold alongside tightness in the spot market.

Goldman Sachs said on Sunday that silver prices were expected to rise in the medium term due to private investment flows, but warned of heightened near-term volatility and downside risks compared to gold.

Non-yielding bullion has gained 54% year-to-date, driven by geopolitical risks, alongside strong central bank gold-buying, exchange-traded funds inflows, Fed rate cut expectations and economic uncertainties stemming from tariffs.

Markets are pricing in a near-certain chance of a 25-basis-point rate cut in October followed by a similar reduction in December.

Fed Chair Jerome Powell is set to address the NABE annual meeting on Tuesday, which may provide fresh rate cut cues.

Other Fed officials are scheduled to speak throughout the week.

Elsewhere, Trump blamed Democrats for his decision to lay off thousands of federal workers during the ongoing government shutdown, which began on October 1, and has delayed key economic data releases.

On the geopolitical front, several world leaders, including Trump, are meeting in Egypt on Monday to discuss ceasefire plans for Gaza.

Platinum, rose 2.6% to $1,628.80 and palladium gained 2.6% to $1,442.06.