Gold and silver prices surged to historic highs on Monday, with gold prices hit record levels in both international and domestic markets, reflecting strong investor demand, tight physical supply, and continued momentum across global bullion trading.
The rally pushed gold beyond key psychological thresholds, while silver extended its sharp upward trend, marking one of the strongest periods for precious metals in recent years.
In international trading, gold climbed sharply, gaining more than $100 per ounce during the session. Spot gold rose over two percent to trade near $5,090 per ounce by early Asian hours, after briefly touching an all-time high above $5,110.
US gold futures for February delivery also advanced at a similar pace, reinforcing bullish sentiment across commodity markets.
Market analysts say the surge is driven by a combination of strong investment flows, expectations of easier global monetary conditions, and continued buying by funds tracking price momentum.
Silver posted even stronger gains, rising nearly five percent in spot trading. Prices moved above $107 per ounce after briefly hitting a record near $109, reflecting tight supply conditions and growing participation from retail and institutional investors.
Other precious metals followed the upward trend. Platinum rose more than three percent to trade near $2,860 per ounce, after reaching a record high earlier in the session. Palladium also advanced, touching its strongest level in over three years.
Industry analysts note that sustained demand for industrial metals, particularly silver and platinum, has added to the bullish momentum.
The global rally translated directly into sharp increases in Pakistan’s local bullion market.
According to rates issued by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of gold per tola jumped by Rs10,900 to reach Rs532,062. The price of 10 grams of gold increased by Rs9,345, settling at Rs456,157.
These gains follow a strong upward move last week, when gold prices had already climbed significantly in local trading.
Silver prices in Pakistan also registered fresh highs. Silver per tola rose by Rs537 to Rs11,428, while the price of 10 grams increased to Rs9,797.
The latest jump builds on a series of strong sessions. Just days earlier, gold per tola had risen by Rs6,500 to Rs521,162, while the 10-gram rate reached Rs446,812.
Before that, another rally saw gold prices increase by over Rs9,000 in a single day, highlighting the speed and intensity of the current upward trend.
Jewellers say such rapid price movements are unusual and reflect strong alignment between global prices and local market adjustments.
Market observers point to several factors behind the sharp rise in bullion prices.
Internationally, strong buying by investors seeking protection against currency volatility and geopolitical uncertainty has supported gold. At the same time, expectations of lower interest rates in major economies have reduced the opportunity cost of holding non-yielding assets like gold.
Silver’s rally has been amplified by tight physical supply and growing industrial demand, particularly from renewable energy and technology sectors.
According to market reports, momentum-based trading and increased participation from retail investors have further fueled the surge, especially in silver.
While sentiment remains bullish, some technical analysts caution that rapid price increases could lead to short-term corrections.
They note that steep rallies often attract profit-taking, which may result in temporary pullbacks. However, many also believe that underlying demand remains strong enough to support prices at elevated levels in the near term.
For now, trading volumes suggest that investor interest in precious metals remains firm.
The impact of rising global prices is also being felt across regional markets.
In India, gold premiums have reportedly climbed to their highest level in more than a decade, driven by expectations of possible changes in import duties and limited supply. Despite weak jewellery demand, local prices remain elevated.
In China, gold has been trading at a premium over international spot prices, reflecting steady domestic demand as global rates approach new highs.
With gold prices hit record levels and silver continuing its strong run, market participants are closely watching upcoming economic data and central bank signals for further direction.
Jewellers and traders in Pakistan say continued volatility is likely, with prices expected to remain sensitive to movements in the international market.
For consumers, the surge has dampened jewellery demand, while investors continue to view precious metals as a key hedge in uncertain economic conditions.
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