Gold prices hit Rs5 lakh in Pakistan for the first time

Karachi: Gold prices surged to a new record on Wednesday, January 21, crossing the Rs5 lakh mark for the first time in Pakistan.

According to the All Pakistan Sarafa, Gems and Jewellers Association (APSGJA), both gold and silver prices reached historic highs following a sharp rise in the international bullion market.

The price of gold per tola increased by Rs12,700 to Rs506,362, marking an all-time high. Similarly, the price of 10 grams of 24-karat gold rose by Rs10,888 to Rs434,123.

Silver also recorded gains, with 24-karat silver per tola climbing by Rs64 to Rs9,933.

In the international market, gold jumped $127 to $4,840 per ounce as escalating geopolitical tensions boosted demand for safe-haven assets, while silver broke above $95 for the first time.

“Gold has surged deeper into uncharted territory as investors hedge against rising political risk,” said Fawad Razaqzada, market analyst at City Index and FOREX.com.

“A softer dollar is providing an additional tailwind for precious metals, reinforcing gold’s rally at a time when confidence in U.S. assets appears to be wobbling.”

The surge comes ahead of former U.S. President Donald Trump’s expected meeting with global business leaders at the World Economic Forum in Davos, Switzerland. Meanwhile, the U.S. dollar registered its largest daily fall in over a month, making dollar-priced gold more affordable for international buyers.

Market analysts said the outlook for gold remains positive amid global economic uncertainty and sustained investor demand for safe-haven assets. They highlighted that gold’s intrinsic value, limited supply, and historical independence from government and central bank policies continue to make it an effective hedge against inflation, currency depreciation, and broader economic instability.

Gold is widely regarded as a reliable store of value during periods of economic turbulence, as it tends to retain its worth when the purchasing power of paper currencies declines. Its performance during geopolitical instability further reinforces its status as a “safe haven” asset.