Gold prices in Pakistan have jumped Rs23,500 per tola in two days, reaching Rs435,636 for 24-karat gold on Thursday as global bullion rallied after the US midterm elections. The rise reverses a slide that had taken local prices to Rs412,136 on Tuesday, and it comes at a time when household budgets are already stretched by food and fuel costs.

According to the All Pakistan Gems and Jewellers Sarafa Association, the price of 24-karat gold per tola rose Rs9,600 on Thursday to Rs435,636, after a Rs13,900 rise on Wednesday, when it reached Rs426,036. The price of 10 grams of 24-karat gold increased Rs8,230 to Rs373,487, while 22-karat gold rose Rs7,544 to Rs342,375 per 10 grams. Silver also gained, adding Rs100 to Rs5,763 per tola. Reports on Friday morning showed the price opening at Rs435,636, with some outlets describing the market as largely stable, though one report carried a headline suggesting a small fall of Rs1,800 per tola, so the rate may already be moving.

The local rise followed global markets. Spot gold gained about $96 per ounce on Thursday to reach roughly $4,131, up from $4,035 in the previous session, and one report described the price as touching a two-week high above $4,134. Mettis Global linked the increase to a softer US dollar and lower US Treasury yields following Democrats’ sweeping victory in the US midterm elections. Pakistan Observer described the rally as a reaction to the midterm setback for Republicans. Gold tends to gain when the dollar weakens and when investors expect lower returns on government bonds, because it becomes cheaper for overseas buyers and more attractive relative to assets that pay interest.

Pakistan’s domestic market has little pricing power of its own, and the sequence shows how closely it follows the global rate. A $96 rise internationally translated into a Rs9,600 rise in the local tola, and the currency played a smaller role than usual. The rupee was quoted at about 276 against the dollar in the interbank market, slightly stronger on the day, according to Business Recorder’s market data, so the movement came almost entirely from the international price.

It helps to look at the longer picture. Gold in Pakistan was Rs457,136 per tola in mid-September, when the international price was about $4,346 per ounce, so even after this week’s surge the local price is roughly Rs21,500 lower than it was seven weeks ago. By late October it had fallen to Rs435,436, and then to Rs412,136 by Tuesday, which means this week’s jump has largely recovered the previous leg of the decline. Analysts quoted in earlier coverage had pointed to support around $3,951 and potential gains toward $4,645, a range that suggests continued volatility instead of a clear trend.

The volatility matters for different groups in different ways. For jewellers and those buying gold for winter weddings, price swings of Rs10,000 in a day complicate decisions about timing, and families may rush to buy ahead of expected increases or delay purchases hoping for a fall. For savers who treat gold as a hedge against inflation and currency pressure, the surge offers a reminder that its value is tied as much to global monetary conditions as to domestic ones. With annual inflation at 9.61% in October and the State Bank having raised its policy rate to 12%, gold competes with savings products that now offer higher returns, which can temper local demand even when international prices rise.

Also Read: Gold Price in Pakistan Surges Rs10,000 Per Tola, Reaches Rs437,936

The wider markets moved in a similar direction on Thursday. The KSE-100 index rose nearly 2% to about 175,380, Brent crude gained about 3% to around $97.4, and the central bank’s foreign exchange reserves edged up $39 million to $21.56 billion, according to Business Recorder. The mix of a stronger equity market, higher oil prices and a weaker dollar illustrates how global factors, not only domestic ones, are driving prices across asset classes this week.

Several questions will shape what happens next. Will the dollar’s weakness persist, or was the reaction to the midterm results a short-term move? How will the US Federal Reserve’s next signals affect expectations on interest rates? And with geopolitical tensions still high in the Middle East, could a sudden escalation or ceasefire alter safe-haven demand again? Local traders will be watching all of them, and given how quickly prices have moved in both directions this autumn, another sharp change is possible within days.

For now, the price of a tola is above Rs435,000 once again, and buyers looking for a clear direction will have to wait for the next global cue.

Compiled by the Weekly PK Business Desk.