Gold prices in Pakistan surged again on Wednesday, tracking a volatile global market while the rupee struggles to find its footing against the dollar.
In the local bullion markets, the price of 24-karat gold jumped by Rs2,400 per tola, settling at Rs264,200. The 10-gram rate followed suit, climbing Rs2,058 to reach Rs226,508. These figures reflect a broader trend of investors shifting toward precious metals as a hedge against persistent economic uncertainty.
The climb comes as international gold prices hit $2,420 per ounce, a move driven by shifting expectations regarding global interest rate cuts. For the Pakistani consumer, however, the local impact is amplified by the rupee’s recent dip. When the local currency weakens, the cost of importing gold rises, forcing jewelers to adjust their daily rates upward almost immediately.
“It’s a double hit,” said a senior Karachi-based bullion dealer. “Customers see the international price moving, but they feel the real pain when the dollar exchange rate forces us to hike prices by thousands in a single morning.”
Retail demand has remained sluggish despite the price hike. Wedding season purchases are currently being deferred by many households, who find the current market rates increasingly out of reach. Analysts suggest that until the rupee stabilizes, the volatility in the gold market is unlikely to subside.
While gold remains a traditional safe haven, the current price levels are testing the limits of local buyers. With no immediate signs of a cooling trend in the global market or a significant recovery for the rupee, the bullion sector expects the market to stay unpredictable for the remainder of the week.
