Karachi: Gold prices surged to a historic high in Pakistan on Wednesday, January 21, crossing the Rs500,000 per tola threshold for the first time amid a sharp rally in international bullion markets.
According to the All Pakistan Sarafa, Gems and Jewellers Association (APSGJA), the price of gold per tola jumped by Rs12,700 to Rs506,362, marking an all-time record. The price of 10 grams of 24-karat gold rose by Rs10,888 to Rs434,123.
Silver prices also climbed, with 24-karat silver per tola gaining Rs64 to reach Rs9,933.
On the international market, gold prices soared by $127 to $4,840 per ounce, driven by rising geopolitical tensions that increased demand for safe-haven assets. Silver also hit a milestone, breaking above $95 per ounce for the first time.
“Gold has surged deeper into uncharted territory as investors hedge against rising political risk,” said Fawad Razaqzada, market analyst at City Index and FOREX.com.
“A softer U.S. dollar is providing an additional tailwind for precious metals, reinforcing gold’s rally at a time when confidence in U.S. assets appears to be wavering.”
The surge comes ahead of former U.S. President Donald Trump’s expected engagement with global business leaders at the World Economic Forum in Davos, Switzerland. Meanwhile, the U.S. dollar posted its largest daily decline in more than a month, making dollar-denominated gold more attractive to international buyers.
Market analysts said gold’s outlook remains positive amid ongoing global economic uncertainty and sustained investor appetite for safe-haven assets. They noted that gold’s limited supply, intrinsic value, and independence from government and central bank policies continue to make it an effective hedge against inflation, currency depreciation, and broader financial instability.
Gold has historically been regarded as a reliable store of value during periods of economic turbulence, often retaining its worth when the purchasing power of paper currencies declines. Its strong performance during geopolitical crises further reinforces its status as a preferred safe-haven investment.
