Karachi, September 21, 2024 – Gold prices in Pakistan reached new record highs on Saturday, with the price of 24-karat gold per tola (roughly 11.66 grams) soaring to Rs 272,500. This marks an increase of Rs 500 from the previous day’s close of Rs 272,000, which was already an all-time high for the precious metal in the domestic market.
Similarly, the price of 24-karat gold per 10 grams rose by Rs 429, settling at Rs 233,625, up from Rs 233,196 the day before. The sustained upward trend has put the gold market on edge, as prices continue to break records week after week.
Experts in the bullion market attributed the continuing surge in gold prices to global trends. In international markets, gold saw a $10 increase, with the price per ounce closing at $2,622, compared to the previous day’s rate of $2,612. This international price movement has directly influenced the local market in Pakistan, as the country is a net importer of gold.
Pakistan imports gold to meet domestic demand, particularly for the manufacturing of jewelry, which also forms part of the country’s exports. Any changes in global gold prices are quickly mirrored in the domestic market due to this dependency on imports. With fluctuations in international markets, coupled with economic uncertainty, the demand for gold as a safe-haven asset continues to rise, both globally and locally.
Global Trends and Local Impact
The recent rally in gold prices is driven by several factors in the global market, including concerns over inflation, geopolitical tensions, and economic uncertainties in major economies. Investors typically flock to gold during periods of instability, viewing it as a reliable store of value. The rising prices in the international market have a direct and immediate impact on Pakistan’s gold rates, exacerbating the pressure on local buyers.
Moreover, Pakistan’s fragile economy, coupled with a depreciating currency, has made gold even more expensive for local consumers. The rupee’s volatility against the U.S. dollar further magnifies the impact of global price hikes, making gold a costly commodity for both jewelers and consumers.
Future Outlook
The continued increase in gold prices is expected to place a further strain on consumers in Pakistan, particularly those involved in the jewelry business. Market analysts are keeping a close eye on international developments, as any significant change in global gold prices could either alleviate or exacerbate the local market’s record-breaking trends.
While gold remains an attractive investment, especially in uncertain times, the record-breaking prices may also discourage retail consumers, potentially reducing demand in the domestic market. For now, however, gold continues its upward march, with no signs of a slowdown in sight.
