Gold Hits Record High in Pakistan Amid Global Market Pressures
Gold prices in Pakistan surged to an all-time high on Wednesday, with 10-gram and one-tola rates reaching Rs264,060 and Rs308,000, respectively. This marks an increase of Rs3,258 and Rs3,800 from the previous day, according to the All Pakistan Sarafa Gems and Jewellers Association (APSGJA).
The spike follows a sharp rise in international gold prices, which hit a record $2,944 per ounce, up $34 from Tuesday. The surge comes amid heightened global economic tensions after former US President Donald Trump threatened to impose a 25% tariff on automobiles, along with similar duties on pharmaceuticals and semiconductors.
The escalating trade war between the US and multiple countries, combined with growing instability in the Middle East, has led global investors to shift their focus towards gold as a safe-haven asset.
Since January 1, 2024, gold prices in Pakistan have seen a dramatic rise. At the start of the year, 10-gram and one-tola gold were priced at Rs188,357 and Rs219,700, while the international rate stood at $2,082 per ounce. The latest figures show an increase of Rs75,703, Rs88,300, and $862 in just a few months.
Jewellery Market Faces Slowdown
Despite record-breaking bullion prices, jewellery sales in Pakistan continue to decline. Chairman of the All Pakistan Jewellers Manufacturers Association (APJMA), Mohammad Arshad, revealed that consumer footfall in jewellery markets has plummeted.
“Our sales now range between 10-15%, which is alarming for the survival of jewellers,” he stated.
As high prices keep buyers away, jewellers are also witnessing a severe decline in new orders for wedding jewellery ahead of the post-Eidul Fitr marriage season. Arshad noted that workers in small and medium-sized jewellery-making units are facing near-total inactivity due to the lack of demand.
With no regulatory measures in place to monitor jewellery sales, the industry continues to struggle as bullion prices soar, putting pressure on both businesses and consumers.
