Gold Prices Surge in Pakistan Amid Global Uncertainty

Gold prices in Pakistan experienced a sharp rebound on September 3, 2026, with 24-karat gold increasing by Rs 11,200 per tola to reach Rs 465,236. This surge effectively offset a decline of Rs 11,300 from the previous trading day. Silver prices also rose by Rs 185 to settle at Rs 7,044 per tola.

The local price spike mirrored gains in the international market, where gold rose by $112 to $4,427 per ounce. The All Pakistan Sarafa Gems and Jewelers Association issued the official rates, while analysts attributed the rally to a retreating US dollar index, easing Treasury yields, and geopolitical uncertainty in the Middle East.

Despite the current rally, the market remains sensitive to Federal Reserve policy. Traders are pricing in a 60% chance of an interest rate hike at the upcoming September meeting. This caution follows signals from Federal Reserve Chair Kevin Warsh regarding persistent inflation, which could counteract the current upward trend in precious metals.