Gold prices in Pakistan scaled another record high on Saturday, tracking a powerful rally in international bullion markets driven by geopolitical tensions, safe-haven demand, and speculative momentum.

In the local market, the price of gold per tola rose by Rs6,500 to reach Rs521,162, while 10-gram gold increased by Rs5,573 to settle at Rs446,812, according to rates released by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA). The latest surge follows Friday's sharp rally, when gold per tola climbed Rs9,100 to close at Rs514,662.

On the international front, gold prices jumped $65 to $4,988 per ounce, placing the metal just shy of the psychologically significant $5,000/oz level, which analysts now view as increasingly plausible.

Silver also registered a historic breakout. In Pakistan, silver prices surged by Rs526 to Rs10,801 per tola, marking a new all-time high. Internationally, silver vaulted above $100 per ounce on Friday, extending a powerful rally that began in 2025 and has continued in the new year, supported by tight physical market conditions and momentum-driven buying.

Abdullah Abdul Razzaq, a member of APGJSA, said both precious metals had reached unprecedented levels domestically and globally. "Gold is at its highest level in both international and local markets. Silver has also reached record levels, crossing into triple digits, which is historic," he said, attributing the rally to global uncertainty and geopolitical tensions driving investors towards safe-haven assets.

Market participants expect volatility to remain elevated. Adnan Agar, Director at Interactive Commodities, noted that international markets were closed on Saturday, limiting price discovery. Gold and silver markets continued to surge, with both metals closing near all-time highs ahead of the upcoming week. "We will find out on Monday when the market opens. Silver closed near $103, and gold at around $4,980," said Agar. He added that gold could cross the $5,000 mark, while silver may reach $107-108 in the coming sessions.

According to Reuters, silver's rally above $100 is driven by strong retail investor activity, momentum trading, and tightness in physical supply. Technical analysts, however, warn that the rapid gains could trigger a sharp correction. Regional markets are also seeing some strain. In India, gold premiums jumped to their highest in over a decade, reaching $112 per ounce above official prices ahead of a potential import duty hike. Local prices hit 159,226 rupees per 10 grams despite weak jewellery demand. In China, gold traded at an $8 premium above spot as global prices neared $4,967 per ounce.