Gold has crossed the historic milestone of Rs500,000 per tola in Pakistan for the first time, reaching Rs506,362 for 24-karat gold on January 21, 2026, according to the All Pakistan Sarafa Gems and Jewellers Associations.
This surge of Rs12,700 reflects strong domestic demand amid global trends. The price for 10 grams of 24-karat gold stood at Rs434,123, up Rs10,888, while 22-karat gold was priced at Rs397,960 per 10 grams, an increase of Rs9,981. Silver also saw gains, with 24-karat silver tola at Rs9,933 (up Rs64) and 10 grams at Rs8,515 (up Rs54).
Internationally, spot gold hit a record high above $4,800 per ounce, trading around $4,840–$4,885 per ounce as per Reuters reports, up over $127 from previous levels. This aligns with the local interbank exchange rate influences cited by the association. The sharp rise in Pakistan mirrors broader global momentum, driven by safe-haven buying as investors react to uncertainties.
International Impacts: Central Banks’ Buying Spree
Central banks worldwide have accelerated gold purchases in recent years, with many diversifying reserves away from traditional holdings.
Reuters highlights ongoing accumulation by major players, viewing gold as a hedge against volatility. This sustained demand has propelled prices to unprecedented levels, contributing to the current rally and supporting local markets like Pakistan’s where imported gold influences domestic rates.
Geopolitical Tensions and Declining Confidence in the Dollar
Geopolitical frictions, including U.S.-Europe disputes over Greenland and potential trade war escalations under renewed tariff threats, have boosted gold’s appeal as a safe asset.
International reports note that these tensions, combined with a softer U.S. dollar amid policy uncertainties, have eroded confidence in fiat currencies.
Investors are shifting to gold to protect wealth, fueling the surge past $4,800/oz and amplifying upward pressure on prices globally, including in emerging markets.