Gold Price in Pakistan Soars to Rs376,700 Amid Global Rally

On Wednesday, gold prices in Pakistan climbed to an all-time high, following a surge in the international bullion market. Softer US employment data raised expectations of a Federal Reserve interest rate cut, fueling safe-haven demand for the precious metal.

Domestic Gold Prices Reach Historic Levels

According to the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of gold per tola jumped Rs6,000, closing at a record Rs376,700. Similarly, the price of 10 grams increased by Rs5,144 to settle at Rs322,959—both historic highs. Just a day earlier, rates remained unchanged at Rs370,700 per tola.

Global Gold Market Outlook

Globally, spot gold surged 0.9% to $3,562.80 per ounce by 10:46 am EDT, touching a record high of $3,565.57. The rally was driven by investor bets on a US Fed rate cut, alongside ongoing geopolitical and economic risks.

Adnan Agar, Director at Interactive Commodities, cautioned that the rally seemed "overextended". Gold touched a peak of $3,567 and was trading around $3,564 after dipping to $3,526. He added that a correction could occur near $3,580–$3,600, potentially pulling prices back into the $3,460–$3,500 range.

Market experts agree that while long-term prospects remain bullish due to macroeconomic uncertainty, short-term corrections are possible depending on upcoming US data releases later this week.

New Gold Trading Framework Announced

The World Gold Council, in partnership with law firm Linklaters and Hilltop Walk Consulting, introduced a new framework called Pooled Gold Interests. This system allows investors to hold fractional ownership of physical gold stored in vaults. The initiative aims to modernize gold trading, enabling easier transactions, secure transfers, and broader use of gold as financial collateral.

Rupee Continues Strengthening Streak

Meanwhile, the Pakistani rupee maintained its upward momentum against the US dollar. By the close of trading, the currency stood at 281.71 per dollar, marking a slight improvement of one paisa. This also represented the rupee’s 19th consecutive session of gains, strengthening by a total of 96 paisa since August 6, 2025.

Government Raises Rs552 Billion Through Securities

On the same day, the State Bank of Pakistan (SBP) successfully raised Rs551.97 billion via auctions of government securities. This included Rs36.74 billion through Pakistan Investment Bonds – Floating Rate (10-year) and Rs515.23 billion through Market Treasury Bills of three, six, and twelve months.

Conclusion

The simultaneous surge in gold prices, the strengthening of the Pakistani rupee, and the government’s successful fundraising through bonds and T-bills highlight the complex dynamics of global and local markets. While gold remains a safe haven, investors should prepare for possible short-term corrections as fresh US economic data is released.