Why PSX and gold prices in Pakistan hitting historic highs?

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Both Pakistan Stock Exchange (PSX) and gold prices in Pakistan are setting new records and hitting all-time highs.

PSX began the week with a bang, shattering all previous records as the benchmark KSE-100 index surged to a historic 156,199 points. By the day’s close, the index stood at 156,087 points, up 1,810 points (+1.17%), marking a moment of celebration for investors and policymakers alike. 

The bullish rally was fueled by better-than-expected corporate earnings, strong liquidity from local institutions, and renewed investor optimism, according to market analysts at Topline Securities. The sheer strength of the upward trend pushed the index into uncharted territory, giving both seasoned traders and newcomers a reason to cheer. 

Heavyweights Lead the Charge 

Market heavyweights like ENGROH, HUBC, LUCK, MARI, and SNGP were the stars of the day. All, these stocks contributed 1,144 points to the index’s upward movement.

Among them, ENGROH stole the spotlight, rising sharply after a Topline Securities research report titled “Earnings Revised Up; Buy Stance Maintained” reignited investor confidence.

ENGROH alone contributed 405 points, a remarkable feat that highlighted the impact of investor sentiment when backed by solid research and earnings potential. 

Impressive Market Participation 

Trading activity also reflected the heightened optimism. The PSX saw 1.123 billion shares change hands, with a total traded value of PKR 62.2 billion — levels that signal the presence of strong institutional backing alongside active retail participation.

K-Electric Limited (KEL) topped the volume charts with 93.7 million shares traded, and it is reminding the investors that even traditionally slower-moving utilities can produce interest during bullish cycles. 

The rally drew immediate attention from the country’s leadership. Prime Minister Shehbaz Sharif clearly expressed satisfaction over the stock exchange crossing the 156,000-point mark, calling it a reflection of growing business and investor confidence in government policies. 

The premier kept on highlighting Pakistan’s success in securing billions of dollars’ worth of agreements and MoUs with Chinese private firms, noting that such partnerships highlight economic potential of the country. “This historic milestone at the PSX is clearly depicting the business community’s and investors’ trust in the government’s direction,” he remarked. 

An Epitome of Optimism Amid Challenges 

For many ordinary investors, this surge is more than just numbers on a screen — it is clearly depicting hope for economic revival. In recent years, Pakistan’s stock market has been volatile, with sharp highs followed by painful lows.

Seeing the index not only recover but touch extraordinary levels is being glanced as a psychological win for both the financial sector and the broader economy. 

Yet, experts keep on cautioning that while the rally is encouraging, sustainability will depend on 

• Political stability 

• External financing flows 

• Consistent policy measures

Still, for now, the PSX’s rise has given the economy something it sorely required: momentum and optimism. 

Gold Nears Rs 400,000 Per Tola as Prices Hit Record Highs in Pakistan 

While PSX dazzled with new records, another financial market told a very different story — the gold market, where prices soared to breathtaking new highs.

Read more: Gold up at Rs 377,900 per tola, hits fresh all-time high in Pakistan

On Monday, the price of gold per tola in Pakistan jumped by Rs 6,100, reaching a historic Rs 384,000, according to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA). Similarly, the price of 10 grams of gold climbed by Rs 5,230 to settle at Rs 329,219. 

This surge came on the heels of Friday’s gain of Rs 1,200 per tola, showing that gold has been on a steep upward climb in recent days. 

Link with International Markets 

The local price hike mirrors developments in the global bullion market, where gold prices have been rallying amid economic uncertainty. Internationally, the precious metal touched $3,613 per ounce (including a $20 premium), reflecting a $61 increase. Spot gold held steady at $3,583.41 per ounce, while US gold futures for December delivery dipped slightly by 0.8% to $3,624. 

Global bullion hit a record high of $3,599.89 per ounce on Friday, fueled by expectations that the US Federal Reserve may cut interest rates later this month. A weaker-than-expected US jobs report reinforced these expectations, pushing investors to seek safe-haven assets like gold. 

Impact at Home 

In Pakistan, the spike has stirred mixed emotions. For investors and families who traditionally buy gold as a store of value or wedding asset, the climb has been both reassuring and worrying. On one hand, gold owners are delighted to see the value of their holdings skyrocket.

On the other hand, ordinary citizens planning weddings or looking to buy jewelry now face record-high costs, making gold increasingly out of reach for many households. 

Traders in major markets like Karachi’s Sarafa Bazaar report lower footfall of buyers, as masses are extremely hesitant to make purchases at such elevated levels. “Most customers now come to sell rather than buy,” one jeweller remarked. 

Silver Follows the Trend 

Silver, often seen as gold’s “smaller cousin” in the precious metals market, also rose modestly. Its price increased by Rs. 23 per tola, bringing it to Rs. 4,338. Though not as dramatic as gold’s rally, it still depicts the same global sentiment — investors moving towards safe havens during uncertain times. 

Economic Uncertainty Driving the Shift 

Gold’s rise is creating fear and uncertainty. Masses in Pakistan consider gold purchasing as a best investment as the currency PKR is devaluing and inflation is going up. Globally, concerns about the US economy, possible Fed rate cuts, and geopolitical uncertainties are keeping demand for bullion elevated. 

For ordinary Pakistanis, however, the contrast is striking: while the stock exchange signals optimism and economic opportunity, the gold market highlights caution and insecurity. Many are left wondering whether to bet on equities for growth or gold for safety. 

Two Markets, Two Stories 

The developments in the PSX and gold markets both are telling very different yet connected stories. On one side, the stock market’s record-breaking rally reflects renewed investor confidence, stronger corporate earnings, and optimism over Pakistan’s economic direction.

On the other, the soaring gold prices depicting lingering uncertainty and the requirement for safe havens amid both domestic and global challenges. 

Together, these trends highlight the dual nature of Pakistan’s economic landscape: one of ambition and opportunity, and the other of caution and protection. For policymakers, investors, and ordinary citizens alike, the coming months will unveil which of these forces takes the upper hand.