Pakistan’s gold market witnessed a historic surge on Friday as domestic gold prices soared to an all-time high. According to the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of 24-karat gold surged by Rs14,100 per tola, reaching Rs456,900, while 10 grams jumped by Rs12,089 to Rs391,718.

The dramatic increase mirrors a sharp rise in international gold prices, which climbed by $141 per ounce, reaching $4,358. Analysts attribute the surge to both global market dynamics and fluctuations in the interbank exchange rate, which continue to influence local pricing trends.

Gold Reserves Reach $9 Billion Amid 50% Surge in 2025

Commenting on the rally, Mohammad Sohail, CEO of Topline Securities, said that gold prices have already surged by over 50% in 2025, boosting Pakistan’s gold reserves to approximately $9 billion, up from $6 billion at the beginning of the year.

He noted that this spike has pushed Pakistan’s total reserves, including foreign exchange holdings, close to $23 billion, nearing an all-time high. Significantly, gold now makes up nearly two-thirds of Pakistan’s liquid reserves, a major shift from the one-third average over the past decade.

Global Factors Fuel Gold Rally

The recent uptrend in gold prices has been linked to geopolitical and economic uncertainties, including global trade tensions, the Ukraine and Gaza conflicts, and expectations of US Federal Reserve rate cuts.

International media also cited remarks from US President Donald Trump, who questioned the sustainability of imposing full-scale tariffs on China, further impacting investor sentiment. As uncertainty grows, several countries are reportedly increasing their gold holdings to hedge against economic instability.

Local Price Discrepancies and Market Concerns

Despite the official rates announced by APSGJA, jewellers across Pakistan continue to quote varying prices. On Friday, traders initially demanded up to Rs470,000 per tola, later adjusting to Rs466,500–Rs467,500 — still notably higher than the official benchmark.

Earlier in the week, the market rate hovered between Rs450,000–Rs452,000, while the Association quoted Rs440,000, highlighting persistent inconsistencies in bullion pricing.

Muhammad Haseen Qureishi, President of the All Karachi Jewellers and Manufacturers Association (AKJMA), called on the government to establish a regulatory authority to issue standardized daily gold rates, combat black market activities, and ensure price uniformity to restore consumer trust.

Silver Also Hits Record Highs

Silver followed gold’s upward trajectory, reaching Rs5,504 per tola and Rs4,718 per 10 grams, marking increases of Rs141 and Rs167, respectively. On the global front, silver climbed by $1.67 to $54.17 per ounce.

However, market sources warned of a domestic supply shortage and rampant black-market trading, with prices fluctuating between Rs7,500 and Rs9,000 per tola in some areas. Small and medium investors have reportedly increased buying amid fears of further price hikes.