KARACHI: A whopping jump of $127 per ounce in the international market to $4,840 per ounce pushed the domestic gold (24 karat) rate to Rs506,362 per tola on Wednesday, the highest in the country’s history, after an increase of Rs12,700 per tola from Tuesday’s price.

The record-high rate has added to the burden on gold jewellery buyers during the ongoing peak wedding season, while investors appear upbeat over the sharp rally triggered by geopolitical tensions, ongoing tariff wars and US President Donald Trump’s efforts to control Greenland.

According to rates issued by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), based on interbank exchange rates, the domestic 10-gram gold rate rose to Rs434,123, up by Rs10,888 from Tuesday.

On Jan 1, the 10-gram and one-tola gold rates stood at Rs234,568 and Rs273,600, respectively, based on the global gold rate of $2,624 per ounce. To date, prices of 10-gram and one-tola gold have surged by Rs199,555 and Rs232,762, respectively, while the international price has climbed by $2,216 per ounce.

Gold currently leads in terms of returns among select asset classes, with stocks in second place.

It has been observed that local gold prices have shown wide disparities in the past between the official rates announced by the association and open market rates prevailing at jewellery shops. However, on Wednesday, jewellers were offering gold at Rs503,000-505,500 per tola, lower than the association’s rate of Rs506,362.

“The price difference between the association and market rates depends on demand and supply,” APSGJA President Qasim Shikarpuri said, adding that investors were currently driving the gold market rather than jewellery buyers.

“Investors all over the world and in Pakistan are selling dollars to buy gold,” he said, adding that central banks in various countries were also making large purchases of the yellow metal.

He said there was no shortage of gold in the market despite heavy investor interest, claiming that the per-tola gold rate in Pakistan was selling under cost by Rs25,000 compared to rates in Dubai.

Silver

In contrast, investors are also active in purchasing silver, which is currently in short supply due to high demand and is available at a hefty premium.

The one-tola silver (24 karat) rate rose to Rs9,933, up by Rs64 per ounce, while the 10-gram rate climbed to Rs8,515, up by Rs54 per ounce, in line with a slight increase in the world silver price to $94.58 per ounce, up by $0.64.

“Silver is available at Rs14,500 instead of Rs9,933 per tola due to huge demand coupled with its shortage in the market, not only in Pakistan but also in Dubai,” Mr Shikarpuri said, adding that speculation was underway in the silver market.

Meanwhile, All Karachi Jewellers and Manufacturers Association President Mohammad Haseen Qureishi recalled that silver was not available at Rs15,000 per tola on Tuesday, while on Wednesday its price was hovering between Rs13,500 and Rs14,000, depending on availability.

Published in Dawn, January 22nd, 2026