In the international bullion market, the price of gold per ounce jumped sharply by $127 to reach a new high of $4,840.
In Pakistan, the price of gold per tola rose by Rs12,700 to a new record level of Rs506,362.
Similarly, the price of 10 grams of gold increased by Rs10,888 to reach Rs434,123.
Silver prices also rose, with the price per tola increasing by Rs64 to a new high of Rs9,933, while the price of 10 grams of silver went up by Rs54 to Rs8,515.
Spot gold climbed 2.6% to $4,885.11 per ounce by 0633 GMT, after scaling a record $4,887.82 earlier in the session. US gold futures for February delivery climbed 2.6% to $4,888.20 per ounce.
Spot silver fell 0.5% to $95.03 an ounce, after hitting a record high of $95.87 on Tuesday.
Spot platinum lost 0.5% to $2,473.80 per ounce after hitting a record $2,511.80 earlier in the day, while palladium was up 0.1% at $1,881.57.
Read: Gold smashes record highs in Pakistan as Greenland war fears cause spike
Earlier on Tuesday, the price of gold per tola rose by Rs4,300 to settle at a new record of Rs493,662 in the local market. Likewise, the price of 10-gram gold increased by Rs3,686 to Rs423,235, according to rates released by the All-Pakistan Gems and Jewellers Sarafa Association.
The rally followed an already strong session on Monday, when gold per tola had climbed by Rs7,500 to Rs489,362.
Silver prices also moved sharply higher, with per-tola rates rising by Rs87 to Rs9,869. Internationally, spot gold jumped 1.7% to $4,672.49 an ounce by 1705 GMT, after hitting a record intra-day peak of $4,689.39. Silver also touched a historic high of $94.61 an ounce, while the US dollar weakened amid escalating trade war concerns.
Meanwhile, the State Bank of Pakistan injected around Rs50 billion through a three-day reverse repo Open Market Operation (OMO) on Tuesday. It accepted the full Rs50.5 billion face value at a uniform rate of 10.51% per annum, with bids ranging between 10.60% and 10.51%.
The Pakistani rupee edged up against the US dollar in the inter-bank market, closing at 279.91 compared to 279.92 a day earlier.