KARACHI: Gold prices in Pakistan rose on Saturday, December 27, 2025, in line with gains in the international bullion market, according to data released by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA).
The price of 24-karat gold increased by Rs2,300 per tola, taking it to Rs475,662 in local markets.
Similarly, the price of 10 grams of 24-karat gold rose by Rs1,972 to Rs407,803.
Silver prices also recorded a sharp increase. The price of silver jumped by Rs462 per tola to Rs8,407.
In the international market, gold prices climbed by $23 to $4,533 per ounce.
Bullion market sources said that fluctuations in global gold prices, coupled with rising local demand, continue to influence precious metal rates, impacting both buyers and investors.
Below AFP examines the reasons for the surge in demand.
– Safe havens –
Gold and silver are traditionally seen as safe-haven assets, and demand has soared amid mounting geopolitical tensions, from US President Donald Trump’s tariffs onslaught to wars in Ukraine and Gaza, as well as recent pressure by Washington on Caracas.
Investors are also uneasy about rising public debt in major economies and the risk of a bubble in the artificial intelligence sector.
These uncertainties are driving up gold and silver, with other metals now starting to see the impact as investors seek to diversify their portfolios, explained John Plassard, an analyst at Cite Gestion Private Bank.
“Metal is once again becoming insurance rather than just a speculative asset,” he told AFP.
– A weak dollar –
Traditional safe havens like the dollar and US Treasuries have become less attractive this year.
Uncertainty around Trump’s presidency and the prospect of further Federal Reserve interest rate cuts, have weakened the dollar, reducing its appeal to investors.
As a result, many investors are turning to gold and silver.
Gold has climbed more than 70 percent this year and passed $4,500 an ounce for the first time on Wednesday, while silver reached a record high of $72 an ounce, with prices up about 2.5 times since January.
A weak dollar is also boosting industrial metals, since commodities priced in dollars become cheaper for buyers when the currency falls.
– Fresh demand –
Industrial demand has surged in recent months, driven by the rise of artificial intelligence and the energy transition.
– Tight supply –
Copper prices have been lifted this year by fears of US tariffs, prompting companies to stockpile ahead of their introduction, with duties imposed on semi-finished products and potentially extending to refined copper.