Karachi, September 20, 2024 – The price of gold in Pakistan continued its upward trend on Friday, reaching an all-time high of Rs 272,000 per tola (24-karat) in the local markets. This surge, amounting to an increase of Rs 3,500 from Thursday’s closing price of Rs 268,500, reflects both domestic demand and significant movements in international bullion markets.
Gold prices per 10 grams also saw a substantial jump, increasing by Rs 3,001 to reach Rs 233,196 from the previous day’s Rs 230,195 in Pakistan. This relentless rise has investors, jewelry makers, and market analysts closely watching the factors contributing to the record-breaking valuations in Pakistan.
Analysts attribute this sharp rally in gold prices to developments in the international market, where gold also surged. On Friday, the price of gold in the global market climbed by $35, closing at $2,612 per ounce compared to $2,577 the day before. The increase in global gold prices is directly affecting Pakistan’s domestic market, given that the country imports gold for its jewelry production, which is then exported internationally.
The steady appreciation in the international market has been driven by several key factors, including global economic uncertainty, inflationary pressures, and a weaker U.S. dollar, all of which have bolstered the demand for the precious metal as a safe-haven investment.
“Gold has always been seen as a reliable hedge against inflation and economic instability,” explained a bullion market expert in Karachi, Pakistan. “The rise in global prices is a reflection of growing concerns over geopolitical tensions and financial market volatility, which has increased investor demand for gold.”
Pakistan’s reliance on gold imports to produce jewelry for international markets further intensifies the impact of global price hikes on the domestic market. The country’s jewelry sector has a strong presence in export markets, and any rise in international prices has a direct effect on local demand and pricing.
As the global economic landscape remains uncertain, market experts anticipate that gold could continue its upward trajectory. For Pakistani consumers and traders alike, the question now is whether this new record high will be surpassed again soon, or if the market will experience some short-term correction.
For now, all eyes remain on both local and international gold markets, as the precious metal continues to shine brightly in an era of financial unpredictability.