Gold prices in Pakistan surged further on Friday, taking the local price above Rs454,000 per tola as international bullion rates continued to climb.
The price of 24-karat gold increased by Rs5,100 per tola to Rs454,336, according to rates issued by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA).
The price of 10-gram gold also rose by Rs4,372 to Rs389,519.
Friday’s increase extended a sharp rally in the local market. Gold has now gained more than Rs25,000 per tola in the past three sessions, with most of the rise coming on Wednesday and Thursday.
On Thursday, the price jumped Rs11,300 to Rs449,236 per tola. This followed a Rs10,000 increase on Wednesday, while gold had slipped by Rs500 on Tuesday.
The latest rise came as international gold prices also moved higher. Gold gained $51 to reach $4,319 per ounce in the international market, including a $20 premium.
Silver also followed the upward trend in Pakistan, with its price increasing by Rs280 to Rs6,939 per tola.
Gold in international market
International gold prices remained firm on Friday as investors weighed the outlook for US interest rates and the impact of economic and geopolitical developments on demand for the precious metal.
Spot gold was trading around $4,295 per ounce. Despite the recent recovery, the metal remains well below its record high of $5,594.82 reached in late January.
UBS expects gold to climb to $5,000 per ounce in the first half of 2027, although it warned that prices could face further pressure in the near term.
The bank expects US inflation to ease gradually, which could give the Federal Reserve room to keep interest rates unchanged for the rest of this year before resuming rate cuts in 2027.
The US central bank last week kept its benchmark interest rate unchanged at 3.50 percent to 3.75 percent.
Higher interest rates generally weigh on gold because the metal does not generate interest income. However, expectations of future rate cuts can support demand for bullion.
UBS Chief Investment Officer Mark Haefele said any decline towards $4,000 per ounce or below could provide investors with an opportunity to build longer-term exposure to gold.