KARACHI – January 21, 2026: Gold prices in Pakistan soared to unprecedented levels on Tuesday, as global uncertainties and geopolitical tensions drove investors toward safe-haven assets. The surge comes after US President Donald Trump signaled additional tariffs on certain European countries amid an ongoing dispute over Greenland, rattling international markets.
In the domestic market, gold jumped by Rs4,300 per tola, reaching an all-time high of Rs493,662, while 10-gram gold climbed Rs3,686 to Rs423,235, according to the latest rates released by the All-Pakistan Gems and Jewellers Sarafa Association.
This rally followed a strong session on Monday, when gold had already surged Rs7,500 per tola to Rs489,362, reflecting growing investor demand for secure assets.
Silver Also Rises Sharply
Silver prices mirrored gold’s momentum, with per-tola rates increasing by Rs87 to Rs9,869. On international markets, spot gold jumped 1.7% to $4,672.49 an ounce, after briefly hitting $4,689.39. Similarly, silver reached a historic peak of $94.61 per ounce. The US dollar weakened as trade war fears intensified, further supporting precious metal prices.
Market analysts noted that the surge has been unusually fast. Adnan Agar, Director at Interactive Commodities, said:
“Gold has been trading in a wide but elevated range. Following Trump’s renewed Greenland warnings, prices surged sharply as soon as markets opened.”
He added that the pace of the rally might not be sustainable. “There’s speculation that gold could reach $5,000 or even $5,500 per ounce this year, but such moves appear too aggressive. Silver’s nearly 40% rise in just 20 days is also concerning.”
Global Exchanges and Position Limits
Agar highlighted that global exchanges, including Shanghai, are imposing position limits on silver to prevent excessive speculation. “Our local exchange is following similar measures to curb traders from being exposed to extreme price swings,” he explained.
State Bank Intervenes, Rupee Stabilizes
In response to market volatility, the State Bank of Pakistan (SBP) injected Rs50 billion through a three-day reverse repo operation (OMO) on Tuesday. The full Rs50.5 billion face value was accepted at a uniform rate of 10.51% per annum, with bids ranging between 10.60% and 10.51%.
The Pakistani rupee showed slight gains in the inter-bank market, closing at 279.91 against the US dollar, compared to 279.92 a day earlier.
