KARACHI: Gold prices in Pakistan recorded a sharp increase on Friday, August 7, 2026, following a strong rally in the international bullion market driven by a weaker US dollar and renewed geopolitical tensions in the Middle East.
According to the latest rates issued by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of 24-karat gold per tola surged by Rs5,100, reaching Rs454,336 compared to Rs449,236 a day earlier. The increase reflects continued volatility in global precious metals markets and growing investor demand for safe-haven assets.
The price of 10 grams of 24-karat gold also witnessed a significant rise, climbing by Rs4,372 to Rs389,519 from the previous rate of Rs385,147.
In the international bullion market, gold prices gained $51 per ounce to settle at $4,319, up from $4,268 in the previous trading session. The strong international performance directly influenced domestic gold prices in Pakistan, which closely follow global market trends.
Silver prices also moved higher in the local market. The price of silver per tola increased by Rs280, reaching Rs6,939 compared to Rs6,659 recorded a day earlier.
Market data shows that gold has witnessed an exceptional rally over the past three trading sessions. During this period, the price of gold per tola has surged by Rs26,400, while the price of 10 grams has increased by Rs22,633, reflecting sustained buying interest amid global uncertainty.
Analysts attribute the latest rise in gold prices to the weakening US dollar, which makes dollar-denominated bullion more attractive for international investors holding other currencies. Increased demand for gold as a hedge against inflation and geopolitical risks has also supported prices.
Meanwhile, oil prices continued their upward momentum after concerns resurfaced over shipping through the Strait of Hormuz. Reports of Iran reviewing proposals to restrict the passage of vessels considered hostile have added fresh uncertainty to global energy markets. Brent crude and US West Texas Intermediate (WTI) crude futures both posted gains, increasing fears of higher inflation worldwide.
Financial experts believe geopolitical developments in the Middle East, fluctuations in crude oil prices, and expectations regarding interest rate decisions by major central banks will continue to influence gold prices in the coming days.
As a traditional safe-haven investment, gold typically benefits during periods of economic uncertainty, inflationary pressure, and geopolitical instability. Investors in Pakistan are expected to closely monitor international market trends, currency movements, and regional developments as gold prices remain highly volatile in the near term.
