Gold prices in Pakistan surged to an all-time high on Wednesday, recording the largest single-day increase in history as global bullion markets continued their strong rally.
According to local bullion market data, gold jumped by Rs21,100 per tola to reach Rs551,662, marking the highest level ever recorded in the country. The price of 10 grammes also climbed sharply, rising by Rs19,080 to Rs472,961.
Silver followed the upward trend in the domestic market. Prices increased by Rs271 per tola, taking silver to Rs11,911. Internationally, gold crossed $5,300 per ounce for the first time, driven by weakening confidence in the US dollar and renewed concerns about the Federal Reserve’s independence.
Spot gold rose 1.7% to $5,275.68 per ounce after touching an intraday record of $5,311.31. Prices had already gained more than 3% in the previous session. US gold futures for February delivery advanced 3.7% to $5,271.70.
Kelvin Wong, senior market analyst at OANDA, said gold’s rally reflects its strong inverse relationship with the dollar. He noted that recent remarks by Donald Trump suggested broad acceptance within the White House of a weaker dollar, which further boosted gold demand.
Read: Gold Surges Past $5,200 as Dollar Slides to Four-Year Low
The US dollar hovered near four-year lows, facing what analysts described as a “crisis of confidence,” after Trump described the currency’s value as “great” despite market concerns.
Gold typically benefits in low-interest-rate environments, and markets widely expect the Federal Reserve to keep rates unchanged at its January policy meeting. Since the start of the year, gold has gained more than 20%, extending last year’s record performance.
Analysts at Deutsche Bank believe gold could rise further, projecting prices as high as $6,000 per ounce this year due to sustained investment demand.
Retail buying has remained strong in key Asian markets such as Shanghai and Hong Kong, even at record prices. Analysts note that while high prices may dampen jewellery demand, they continue to attract speculative retail investors.
Spot silver slipped slightly by 0.2% to $112.82 per ounce after hitting a record $117.69 earlier this week. Despite the dip, silver has gained nearly 60% so far this year. Platinum edged up 0.1% to $2,644.35 per ounce, after reaching a record $2,918.80 on Monday. Palladium also posted a modest 0.1% increase to $1,935.57.
