KARACHI (Dunya News) - Gold and silver prices surged to historic highs in both international and local markets on Wednesday, marking the biggest single-day increase - Rs21,100 -on record.
Spot gold climbed 2.3% to $5,305.65 per ounce, as of 0832 GMT, after hitting a record high of $5,311.31, adds Reuters.
It has gained more than 20% since the start of the year.
US gold futures for February delivery surged 4.3% to $5,301.90 per ounce.
Gold, which does not yield interest, typically performs well in a low-interest-rate environment.
Deutsche Bank said on Tuesday that gold could climb to $6,000 per ounce in 2026, citing persistent investment demand as central banks and investors increase allocations to non-dollar and tangible assets.
Spot silver was up 1.5% at $114.68 an ounce, after hitting a record high of $117.69 on Monday. The metal has jumped almost 60% so far this year.
Spot platinum gained 2.3% to $2,703.11 per ounce after hitting a record $2,918.80 on Monday, while palladium was up 2.2% at $1,976.62.
The US dollar was grappling with a "crisis of confidence" as it languished near four-year lows, exacerbating dollar selling, after President Donald Trump said the currency's value is "great" when asked whether he thought it had declined too much.
Following the surge in global prices, gold rates in Pakistan also witnessed a massive increase. The price of gold per tola rose by Rs21,100, reaching a record high of Rs551,662. Similarly, the price of 10 grams of gold increased by Rs18,090 to settle at Rs472,961.
Silver prices also climbed to new peaks. The price of silver per tola increased by Rs271 to reach Rs11,911, while the price of 10 grams of silver rose by Rs232 to Rs10,211.
Market experts say continued volatility in global financial markets, inflation concerns, and geopolitical uncertainties have driven investors toward precious metals, pushing prices to unprecedented levels.
The sharp rise has raised concerns among consumers and jewellers, while investors view the surge as a strong signal of gold’s growing appeal as a hedge against economic instability.