Gold Prices Cross Rs 5 Lakh Mark in Pakistan for the First Time

Gold prices in Pakistan reached a historic milestone on Wednesday, January 21, as rates crossed the Rs5 lakh level for the first time amid a strong surge in global bullion markets. According to the All Pakistan Sarafa, Gems and Jewellers Association, both gold and silver touched record highs following sharp gains internationally.

The price of gold per tola jumped by Rs12,700 to reach an all-time high of Rs506,362, while the rate of 10 grams of 24-karat gold increased by Rs10,888 to Rs434,123. Silver prices also moved upward, with 24-karat silver per tola rising by Rs64 to Rs9,933.

In the international market, gold surged by $127 to $4,840 per ounce as rising geopolitical tensions fueled strong demand for safe-haven assets. Silver also crossed a new milestone, breaking above $95 per ounce for the first time. Market analysts attributed the rally to increased political uncertainty and a weakening US dollar, which made dollar-denominated commodities more attractive to global investors.

Analysts noted that investor confidence in traditional financial assets has shown signs of strain, encouraging a shift toward precious metals. The softer dollar has provided additional momentum to gold prices, reinforcing its upward trend during a period of heightened global risk.

The rally comes ahead of an expected meeting between former US President Donald Trump and global business leaders at the World Economic Forum in Davos, while the US dollar recorded its largest single-day decline in more than a month. This decline further supported gold prices by improving affordability for international buyers.

Experts believe the outlook for gold remains strong due to ongoing economic uncertainty and persistent demand for safe-haven investments. They highlighted that gold’s limited supply, intrinsic value, and long-standing independence from government and central bank policies continue to make it a reliable hedge against inflation, currency depreciation, and broader financial instability. Gold is widely viewed as a dependable store of value during times of economic and geopolitical stress, as it tends to preserve purchasing power when confidence in paper currencies weakens.