Karachi, August 21, 2024 – Gold prices in Pakistan soared to a new record high on Wednesday, reaching Rs 261,000 per tola after gaining Rs 300 in value. This historic rise marks a significant milestone for the precious metal in the domestic market, as it continues to attract investors amid economic uncertainty.
On the previous day, the price of 24-karat gold per tola closed at Rs 260,700 in the local markets. The increase in gold prices has been particularly notable in the 24-karat per 10 grams category, which saw a rise of Rs 257, bringing the price to Rs 223,765 from the last day’s closing of Rs 223,508.
Analysts have attributed the surge in gold prices to the continued depreciation of the Pakistani rupee, which fell by 18 paisas against the US dollar, closing at PKR 278.52 in the interbank market. The weakening rupee has made gold more expensive in the local market, as the metal is priced in dollars internationally.
“The depreciation of the rupee has been a key factor driving gold prices upward,” said an analyst. “As the rupee weakens, investors tend to seek refuge in safe-haven assets like gold, leading to increased demand and higher prices.”
In contrast, global gold markets remained stable on Wednesday, with prices holding steady at $2,512 per ounce. The unchanged international price highlights that the surge in domestic gold prices is primarily driven by local factors, particularly the currency depreciation.
The ongoing rise in gold prices reflects the growing concern among investors over the economic outlook in Pakistan. With the rupee under pressure and inflationary trends persisting, gold is increasingly viewed as a reliable store of value, leading to higher demand and record-breaking prices.
Market participants are closely watching the developments in both the currency and commodity markets, as further depreciation of the rupee could push gold prices even higher in the coming days. The record-breaking journey of gold in Pakistan underscores the challenges faced by the economy and the heightened demand for safe assets amid financial instability.
As the gold market in Pakistan continues to break records, analysts advise investors to stay informed and consider the broader economic context when making investment decisions. The outlook for gold remains bullish, with potential for further gains if the rupee continues its downward trajectory.
