Gold prices surge: Rs338,800 per tola, second-largest increase since July 2022

April 11, 2025 (MLN):Pakistan witnessed a historic surge in gold prices on Friday, with 24-karat gold soaring to Rs338,800 per tola a single-day jump of Rs10,000, the second-largest increase since July 2022.

Similarly, 24-karat gold per 10-gram climbed to Rs290,466, after a massive gain of Rs8,573 in just one day yet another unprecedented milestone.

The 22-karat gold rate also rose sharply, reaching Rs266,261 per 10-gram.

These record-breaking figures were shared by the All-Pakistan Gems and Jewelers Sarafa Association (APGJSA), reflecting a significant shift in the domestic bullion market.

On the other hand, silver prices remained unchanged in the domestic market, with 24-karat silver being sold at Rs3,234 per tola and Rs2,772 per 10-gram.

Globally, spot gold traded near $3,211 an ounce, up $22.5 or 0.71% from the previous session, marking the first time it surpassed this key level.

The surge was fueled by a weaker dollar and growing economic concerns amid an escalating trade war.

"Recession risks are mounting, bond yields are soaring, and the U.S. dollar continues to weaken all factors reinforcing gold's role as a crisis hedge and inflation shield," said Alexander Zumpfe, a precious metals trader at Heraeus Metals Germany.

Despite a sudden pause by U.S. President Donald Trump on newly imposed "reciprocal" tariffs shortly after they came into effect the trade war intensified as tariffs on Chinese imports were ramped up in retaliation.

The move failed to ease anxieties among business leaders over the trade war's unpredictable execution.

As a result, global stocks declined, and the U.S. dollar index plummeted to a decade low, making dollar-priced bullion cheaper for foreign investors.

Spot gold’s rally has been on fire, hitting multiple record highs and climbing nearly 21% year-to-date, driven by uncertainties, central bank buying, and inflows into gold-backed ETFs.

"We believe gold has further to run in the upside case, we target $3,400–3,500/oz over the months ahead," said UBS analyst Giovanni Staunovo.

Meanwhile, recent U.S. data showed an unexpected dip in consumer prices for March, with attention now shifting to producer price data for insights into the Federal Reserve’s monetary stance.

Traders are increasingly betting on a rate cut by June, with expectations of a full percentage point reduction by year-end 2025.

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