KARACHI: In continuation of a record-setting spree, the local one-tola gold bar price crossed the benchmark of Rs300,000 on Friday for the first time due to surging world gold prices fuelled by a tariff war launched by Donald Trump’s administration with key trade partners.

All Pakistan Sarafa Gem and Jewellers Association (APSGJA) said the one-tola rate rose Rs1,446 to Rs300,046 and the 10-gram by Rs1,154 to Rs257,241 day-on-day. The world gold price soared to an all-time high of $2,869 per ounce, up by $10 from Thursday.

Since the start of the US tariff battle with Canada, Mexico and China, the surging local prices have continuously been putting immense pressure on low and middle-income families who either may not be able to purchase gold jewellery or compromise their wishes to make sets of reduced weight.

Talking to Dawn, APSGJA President Mohammad Qasim Shikarpuri said the market is in the grip of big investors who have been lifting gold bars from jewellery shops or the Bullion Exchange.

He claimed that most of the buyers, already perturbed by the high cost of living, are bringing their old jewellery to make new sets by merely adding a half tola.

He said the international gold prices were surging due to US trade tariffs on Canada, Mexico and China and that this has nothing to do with the Ukraine-Russia war or the Gaza-Israel conflict.

“I think the world gold rates are now reaching a saturation point and it may see a correction of $10-15 per ounce next week,” he hoped.

Mr Shikarpuri also claimed that for the first time, gold rates in Karachi are almost on par with rates in other cities, or there might be a minor difference of Rs500-1,000 per tola.

Gold rates are being fixed on interbank rupee-dollar parity, which has been stable for over a year.

Published in Dawn, February 8th, 2025