Gold prices in Pakistan climbed to another all-time high on Monday, extending a strong rally that has kept the precious metal in focus for investors.
In the local market, the price of gold per tola rose by Rs10,900 during the day to settle at Rs532,062, according to rates released by the All-Pakistan Gems and Jewellers Sarafa Association. The jump marked a continuation of last week’s upward trend, when prices had already moved sharply higher.
The price of 10-gram gold followed the same path. It increased by Rs9,345 to reach Rs456,157, reflecting firm demand and rising international prices.
On Saturday, gold per tola had closed at Rs521,162 after gaining Rs6,500 in a single session. The fresh increase on Monday pushed prices to yet another record, adding to concerns among buyers who have seen rates climb steadily in recent weeks.
Gold price in Pakistan may continue to rise amid strong global demand
Gold prices in Pakistan are expected to remain under upward pressure as global gold markets enter what analysts describe as a more durable phase of the rally, driven not just by central banks but also by private investors seeking long-term protection.
Internationally, gold’s rise has gained fresh momentum since 2025, moving beyond traditional drivers such as interest rates. What started as heavy buying by central banks has now expanded into a broader trend of diversification by wealthy individuals, private investors, and financial market participants concerned about global fiscal and monetary risks.
This shift is already reshaping price expectations. Goldman Sachs has raised its forecast for gold to $5,400 per ounce by December 2026, up from its earlier estimate of $4,900. The bank says private-sector demand is no longer a potential risk factor but a force already influencing prices. Its forecast assumes these investors hold on to their positions through 2026, keeping gold at a higher base level.
Global forces behind the rally
Central banks, particularly in emerging markets, remain a key source of demand as countries continue to diversify reserve assets. At the same time, western gold exchange-traded fund holdings have risen sharply since early 2025, increasing by around 500 tonnes. Physical buying by high-net-worth investors and growing activity in options markets have added further pressure on limited global supply.
Unlike many commodities, gold supply does not respond quickly to higher prices. New mine production adds only a small amount to the existing stock each year, which means prices tend to stay firm as long as demand holds.
Goldman Sachs expects further support from possible interest rate cuts by the US Federal Reserve in 2026, which would reduce the cost of holding gold. Until central bank buying slows or global policy risks ease, analysts see limited downside.
Impact on Pakistan’s gold market
These global trends are already visible in Pakistan. Local gold prices hit fresh records again on Saturday, rising for the fifth time in a single week. According to the All Pakistan Gems and Sarafa Association, gold jumped by Rs6,500 per tola to Rs521,162, while the price of 10 grammes climbed to Rs446,812.
The surge follows a sharp gain a day earlier, highlighting the speed at which prices are moving. In the international market, gold rose to $4,988 per ounce, adding direct pressure on local rates.
For many households, especially those buying jewellery for weddings, gold is becoming harder to afford. Investors holding gold, however, are benefiting from the rally as uncertainty continues to drive demand.
If global prices rise further, Pakistan’s gold market is likely to follow.
