Karachi, August 22, 2024 – Gold prices in Pakistan soared to a new all-time high on Thursday, with the rate of 24-karat gold reaching Rs 261,800 per tola.
This marked an increase of Rs 800 from the previous day’s closing price of Rs 261,000, which had already set a record. The surge in gold prices comes despite a decline in international gold markets, highlighting the unique local factors driving the precious metal’s value in Pakistan.
In tandem with the rise in per tola prices, the rate of 24-karat gold per 10 grams also saw a significant increase, climbing by Rs 686 to close at Rs 224,451, up from Rs 223,765 the previous day. The continued ascent of gold prices in the domestic market is largely attributed to the depreciation of the Pakistani rupee, which has exerted upward pressure on the cost of imported goods, including gold.
Analysts point out that while gold prices in the international market are typically a major determinant of rates in Pakistan, the current surge is primarily driven by local economic conditions. On the international front, gold prices actually declined, with the rate per ounce falling by $8 to close at $2,508, down from $2,512 the previous day. This decline contrasts sharply with the situation in Pakistan, where gold prices continue to climb.
“The weakening of the rupee against the dollar has played a significant role in the upward trajectory of gold prices in Pakistan,” noted an industry expert. “Despite the drop in global gold prices, the depreciation of our currency has made gold more expensive locally. This is a trend we expect to continue if the rupee remains under pressure.”
The surge in gold prices has sparked concerns among consumers and investors alike, with many questioning how long this trend will persist. Gold, traditionally viewed as a safe-haven asset, has seen increased demand in Pakistan as economic uncertainties continue to loom large. The combination of a depreciating currency and rising inflation has driven more people to invest in gold, further fueling the price increase.
Market observers will be closely watching the rupee’s performance in the coming days, as any further depreciation could push gold prices even higher. With the current economic environment showing little sign of improvement, the record highs in gold may become the new normal for Pakistan’s market.
