Gold prices surge despite rupee stability

Gold prices in Pakistan witnessed a sharp rise on Monday, closely following international market trends and reversing the decline seen over the weekend.

The upward trajectory reflects renewed momentum in global demand for the precious metal, driven by inflationary pressures, investor hedging strategies, and uncertainty in competing asset classes.

Domestic Market Update

According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA):

• The price of 24-karat gold per tola increased by Rs1,500, reaching Rs357,700.
• The price of 10 grams of 24-karat gold rose by Rs1,286, settling at Rs306,670.
• For 22-karat gold, 10 grams gained Rs1,179, reaching Rs281,124.

Jewellers noted that local bullion rates continue to track global movements, with the rupee’s minor fluctuations playing only a limited role.

Global Market Influence

On the international front, gold gained $15 per ounce, climbing to $3,350. This increase boosted bullish sentiment in the domestic market, as Pakistani rates are directly linked to global prices and the exchange rate.

Despite a slight appreciation of the rupee, investors continued to turn towards gold as a safe-haven asset amid inflation concerns, geopolitical tensions, and expectations of potential currency weakness.

Silver, however, remained unchanged, with the price holding at Rs4,031 per tola and Rs3,455 per 10 grams in Pakistan. Internationally, silver stood stable at $37.98 per ounce.

Rupee Performance

The Pakistani rupee appreciated 0.01% against the US dollar on Monday. The inter-bank closing rate was Rs282.02 per dollar, compared to Rs282.06 on Friday, according to the State Bank of Pakistan (SBP).
While marginal, this gain added some stability to the exchange rate, cushioning the impact of global gold price hikes on local markets.

SBP to Launch New Payment System PRISM+

Meanwhile, the State Bank of Pakistan (SBP) is set to roll out its upgraded payment and settlement system, PRISM+, today, August 19. Governor Jameel Ahmad will preside over the launch, joined by top officials, banking institutions, and stakeholders.

The system, aligned with ISO 20022 international standards, introduces two major components:

• Real-Time Gross Settlement (RTGS): Enabling faster and larger value transfers.
• Central Securities Depository (CSD): Covering government securities such as T-Bills and Pakistan Investment Bonds.

According to SBP, PRISM+ offers real-time transactions, priority-based settlements, live monitoring dashboards, automatic invoicing, and stronger data security. Every transaction will carry a full audit trail, role-based access, and real-time alerts to minimize settlement risks.

Economic analysts quoted by Digital Media Publisher said that the simultaneous rise in gold prices and the SBP’s digital upgrade highlights how Pakistan’s financial system is navigating global uncertainty while modernising domestic operations.

Similarly, financial experts speaking to Digital Media Publications noted that PRISM+ will not only increase transparency but also encourage confidence in Pakistan’s financial infrastructure.

As per Digital Media Publisher, the combination of strong demand for gold and reforms in digital payments shows how investors and regulators are adapting to evolving economic challenges.

Meanwhile, Digital Media Publications reported that with gold becoming an attractive hedge, the government’s focus on financial system upgrades is equally crucial for long-term stability.