Gold prices hit Rs5 lakh in Pakistan for the first time
KARACHI: Gold prices hit Rs5 lakh in Pakistan for the first time on Wednesday, January 21, as the local bullion market reacted sharply to soaring international rates driven by geopolitical tensions and a weaker US dollar.
According to the All Pakistan Sarafa, Gems and Jewellers Association (APSGJA), gold prices surged to historic levels across the country. The price of gold per tola jumped by Rs12,700 to Rs506,362, marking the highest level ever recorded in Pakistan. Meanwhile, the price of 10 grams of 24-karat gold rose by Rs10,888 to Rs434,123.
Silver prices also followed the upward trend, with 24-karat silver per tola increasing by Rs64 to Rs9,933, reflecting strong demand for precious metals in both domestic and international markets.
On the global stage, gold prices climbed sharply by $127 to reach $4,840 per ounce, while silver crossed $95 per ounce for the first time, as investors flocked to safe-haven assets amid escalating geopolitical risks and economic uncertainty.
Market analyst Fawad Razaqzada of City Index and FOREX said gold has moved further into uncharted territory as investors hedge against rising political instability. He noted that a softer US dollar has added momentum to the rally, particularly at a time when confidence in US financial assets appears to be weakening.
The surge in gold prices comes ahead of former US President Donald Trump’s expected engagement with global business leaders at the World Economic Forum in Davos, Switzerland, while the US dollar posted its largest daily decline in over a month, making dollar-denominated gold more attractive for international buyers.
Analysts believe the outlook for gold remains bullish as global economic uncertainty persists. They emphasized that gold’s limited supply, intrinsic value, and independence from government and central bank policies continue to position it as a powerful hedge against inflation, currency depreciation, and broader financial instability.
Gold is widely viewed as a reliable store of value during periods of economic turbulence, as it typically retains its worth when paper currencies lose purchasing power. Its strong performance during geopolitical crises further reinforces its reputation as a preferred safe-haven asset for investors worldwide.
