Gold Prices Hit New Highs as Markets Rise

Gold prices surged to new record highs this week as global investors rushed to safe-haven assets amid growing economic uncertainty, dovish U.S. Federal Reserve signals, and a weakening dollar. The precious metal touched $3,600 per ounce in international markets the highest ever recorded.

In Pakistan, the price of 24-karat gold soared to PKR 373,800 per tola, reflecting both the global spike and the ongoing depreciation of the rupee. Traders in Karachi, Lahore, and Rawalpindi reported increased retail activity, especially among small-scale investors and jewellers preparing for the wedding season.

Why Gold Is Rallying Globally

Analysts say the rally is primarily driven by expectations that the U.S. Federal Reserve may begin cutting interest rates as early as November, following a series of soft labor market indicators and easing inflation data. Lower interest rates make non-yielding assets like gold more attractive, especially in times of economic flux.

“The markets are pricing in at least two rate cuts by early 2026, which is creating a bullish environment for gold,” said Jeffrey Halley, Senior Market Analyst at OANDA. “Add to that the weakness in the U.S. dollar, and you’ve got the perfect storm.”

Geopolitical tensions particularly in Eastern Europe and parts of Asia have also contributed to the safe-haven demand, with central banks across China, Russia, and India continuing to add gold to their reserves.

Impact on Pakistani Gold Market

The local bullion market followed the global trend closely, with gold prices in Pakistan rising by over PKR6,100 per tola in just one week. The current rate for 22-karat gold stands around PKR 373,800 per tola, making it increasingly inaccessible for average consumers.

“We’re seeing a mix of panic buying and investment-driven demand,” said Bilal Memon, a gold dealer in Karachi’s Saddar market. “People want to park their money somewhere safe as the rupee keeps losing ground.”

Pakistan’s currency has been under pressure amid high inflation, ongoing IMF negotiations, and fluctuating remittance flows. The rupee traded at PKR 315.50 to the U.S. dollar on Tuesday, further inflating the local cost of imported gold.

Investor Sentiment and Outlook

Market analysts expect continued volatility in both global and local gold markets, with short-term corrections likely. However, many remain optimistic about gold’s medium-term trajectory.

“Gold could test the $3,700 mark by Q4 if the Fed confirms a rate cut cycle,” said Aysha Khan, a Karachi-based financial consultant. “Locally, unless the rupee stabilizes or demand dips sharply, we’re unlikely to see major relief in prices.”

Meanwhile, retail jewellers are bracing for subdued wedding season sales, as high prices force customers to opt for lighter pieces or delay purchases altogether.

Quick Facts

• Global gold price (as of Sept 9): ~$3,649/oz (new all-time high)

• Pakistan 24k gold price: ~PKR 373,800 - 384,000 per tola

• USD to PKR rate: 1 USD = ~PKR 315.50

• Key drivers: Fed rate cut expectations, weakening U.S. dollar, geopolitical risks, and strong central bank buying.

Conclusion

As markets digest economic signals and geopolitical risks intensify, gold remains a critical asset for investors and central banks alike. For Pakistani consumers and investors, however, the surging prices bring a mix of opportunity and challenge offering a potential hedge against inflation, but also straining household budgets and traditional gold-buying habits.