Karachi, March 4, 2025 – Gold prices in Pakistan witnessed a sharp surge on Tuesday, rising by Rs 4,800 per Tola, driven by global uncertainties linked to the ongoing Ukraine situation. This significant increase reflects the heightened demand for gold as a safe-haven asset amid geopolitical tensions.
The price of 24-karat gold per Tola soared to Rs 306,300, up from the previous day’s closing of Rs 301,500 in the local bullion markets. Notably, gold prices in Pakistan had previously hit an all-time high of Rs 309,500 per Tola on February 24, 2025. Similarly, the price of 24-karat gold per 10 grams climbed by Rs 4,115, settling at Rs 262,602, compared to the last day’s closing rate of Rs 258,487 in domestic markets.
According to bullion market experts, the latest rise in gold prices is closely tied to the uncertainty in international markets. Analysts attribute the spike to the recent decision by the United States to halt military aid to Ukraine, which has created panic across global financial markets. Investors worldwide have turned to gold, traditionally considered a safe investment during crises, leading to an upward trend in prices.
In the international market, gold prices jumped by $47 per ounce, reaching $2,916, compared to the previous day’s closing at $2,869. Experts believe that as long as the Ukraine crisis continues to unfold, with rising geopolitical tensions and economic instability, gold prices are likely to remain volatile.
The situation in Ukraine has triggered a wave of risk aversion, prompting investors to move away from volatile assets like stocks and into commodities like gold. With economic uncertainty prevailing, central banks and institutional investors worldwide are also increasing their gold reserves as a hedge against inflation and financial instability.
Pakistan’s gold market has been heavily influenced by international trends, and traders anticipate further fluctuations in prices as global events develop. With no immediate resolution in sight for the Ukraine crisis, market participants expect gold to remain in high demand, potentially leading to further price hikes in the near future.