Gold became even more expensive for Pakistani buyers on Friday, continuing a trend that has pushed the metal beyond the reach of many households already struggling with rising living costs.
According to the All-Pakistan Gems and Jewellers Sarafa Association, the price of 24-karat gold climbed by another Rs10,700, bringing the rate to Rs454,262 per tola. The 10-gram price also increased sharply, rising by Rs9,174 to Rs389,456. Rates for 22-karat gold followed the same direction, reaching Rs357,014 per 10-gram.
Silver was no exception. Domestic prices increased to Rs6,684 per tola, up Rs232, while the 10-gram rate rose by Rs199 to Rs5,730.
International market pushes prices higher
The rise in local rates was in line with global trends, where gold has been on a steady climb. Spot gold traded near $4,329 an ounce, gaining $53.4 during the session as a softer dollar and expectations of further interest rate cuts boosted demand. Prices have now touched their highest point in seven weeks and are on track for a weekly gain of more than 2 percent.
Analysts say a mix of economic and geopolitical uncertainty is driving buyers toward safer assets. Zain Vawda, an analyst at MarketPulse by OANDA, noted that higher US jobless claims and tensions between Washington and Caracas have added to the demand for gold.
The US Federal Reserve trimmed interest rates for the third time this year on Wednesday. While the central bank signalled a cautious stance on more cuts, investors still expect two reductions in the coming year. Markets are now looking ahead to next week’s US non-farm payrolls report for fresh guidance.
Lower interest rates typically strengthen the appeal of non-yielding assets such as gold, giving the metal further support.
The international silver market also saw strong momentum, with prices touching a record high of $64.32 an ounce before settling at $63.87. The metal has gained more than 9 percent this week alone, driven by strong industrial demand, tight supplies and renewed interest from retail investors.
Commodity strategist Ole Hansen of Saxo Bank said silver continues to benefit from a combination of potential shortages, a tight market and growing inflows into Silver ETFs.
In Asia, however, demand has slowed. India recorded wider gold discounts this week despite the wedding season, while China also saw muted buying due to high spot prices.
