KARACHI: Gold prices in Pakistan recorded a sharp increase on Friday, January 2, 2026, in line with rising trends in the international bullion market, according to data released by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA).In the local market, the price of 24-karat gold per tola surged by Rs5,700 to Rs460,262, while the price of 10 grams of 24-karat gold increased by Rs4,887 to Rs394,600.Similarly, the price of 10 grams of 22-karat gold rose by Rs4,480 to Rs361,729.Silver prices also increased. The price of 24-karat silver per tola went up by Rs227 to Rs7,862, while 10 grams of silver rose by Rs195 to Rs6,740.In the international market, gold prices climbed by $57 to $4,379 per ounce, while silver gained $2.27 to reach $73.87 per ounce, the association reported.– Safe havens –Gold and silver are traditionally considered safe-haven assets, and demand for them has surged amid rising geopolitical tensions, including US President Donald Trump’s tariff policies, ongoing conflicts in Ukraine and Gaza, and recent pressures from Washington on Caracas.Investors are also uneasy about rising public debt in major economies and the risk of a bubble in the artificial intelligence sector.These uncertainties are driving up gold and silver, with other metals now starting to see the impact as investors seek to diversify their portfolios, explained John Plassard, an analyst at Cite Gestion Private Bank.“Metal is once again becoming insurance rather than just a speculative asset,” he told AFP.– A weak dollar –Traditional safe-haven assets like the dollar and US Treasuries have become less attractive this year.Uncertainty around Trump’s presidency and the prospect of further Federal Reserve interest rate cuts, have weakened the dollar, reducing its appeal to investors.As a result, many investors are turning to gold and silver.Gold has climbed more than 70 percent this year and passed $4,500 an ounce for the first time on Wednesday, while silver reached a record high of $72 an ounce, with prices up about 2.5 times since January.A weak dollar is also boosting industrial metals, since commodities priced in dollars become cheaper for buyers when the currency falls.