Gold prices in Pakistan eased Rs1,500 on Tuesday, diverging from a powerful rally in international markets where bullion surged beyond the historic $5,000 per ounce threshold, driven by intensifying economic and geopolitical uncertainty and sustained safe-haven demand.

In the domestic market, the price of gold per tola declined by Rs1,500 to Rs530,562, according to rates issued by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA). Similarly, the price of 10-gram gold fell by Rs1,286 to Rs454,871.

The modest pullback followed Monday's sharp rally, when gold surged by Rs10,900 per tola to hit a record Rs532,062, reflecting the strong transmission of the global price breakout into local markets.

Internationally, spot gold rose 1.3% to $5,079.62 per ounce by 1441 GMT, after touching an all-time high of $5,110.50 on Monday and closing at $5,014.29, according to Reuters. The metal has now gained more than 62% since 2025, marking one of the strongest annual rallies in modern market history. Analysts attribute the surge to persistent safe-haven demand amid geopolitical instability, currency volatility, and heightened macroeconomic uncertainty.

Meanwhile, silver in Pakistan rose by Rs212 to Rs11,640 per tola, reflecting broader volatility across precious metal markets as investors reposition portfolios in response to global risk dynamics.

Commenting on market conditions, Adnan Agar, Director at Interactive Commodities, said gold was showing signs of short-term consolidation after the sharp rally. "Gold was underwhelmed, similar to yesterday (Monday). It hit highs near $5,100 and was later trading around $5,085. Yesterday's $5,110 level can be considered an all-time high," he said.

Agar added that investor positioning remains cautious ahead of the US Federal Reserve's monetary policy decision, due early Wednesday (Pakistan time). "The US monetary policy announcement will determine the next direction for gold. For now, a correction phase seems to be forming. Silver and platinum are already down, while gold has paused. A new direction will be set after the Fed's decision," he noted.

Globally, the rally in gold has been fueled by aggressive central bank accumulation, growing de-dollarisation strategies, and escalating geopolitical risk. Analysts say sovereign demand has now become a structural driver of the gold market rather than a cyclical one.

With prices at record highs, buying activity has surged in Asian markets, particularly in Shanghai and Hong Kong, where jewellery stores and bullion dealers have reported heavy footfall. Analysts at Societe Generale expect gold to reach $6,000 per ounce by year-end, while Citi has upgraded its short-term silver price forecast to $150 per ounce, reinforcing bullish sentiment across precious metal markets.

Meanwhile, the Pakistani rupee edged up 0.01% in the inter-bank market on Tuesday, closing at 279.82 per dollar, a gain of Rs0.03 from Monday's close at 279.85.