Karachi, November 4, 2023 – Gold rate in Pakistan have witnessed a steady increase, reaching Rs 214,600 per tola on Saturday.
This surge in the precious metal’s value is attributed to the recent upswing in international markets and the ongoing depreciation of the local currency, the Pakistani Rupee (PKR).
The global gold market experienced a notable boost, with gold prices increasing by $7 per ounce to conclude at $2,012. This surge in the international market has had a direct impact on gold rates in Pakistan, where gold has risen by Rs 200 per tola. These developments have grabbed the attention of investors and market enthusiasts alike.
Market experts and analysts have cited multiple factors contributing to this recent increase in gold prices. First and foremost, the international gold market has shown strength and resilience. Investors have been turning to gold as a safe haven asset due to growing economic uncertainties and geopolitical tensions in various parts of the world. This surge in international demand has led to an upward movement in gold prices, influencing the local market.
Furthermore, the depreciation of the Pakistani Rupee against the US dollar has played a crucial role in the steady rise of gold rates in Pakistan. The PKR has been on a downward trajectory for the past 10 consecutive days, making imports more costly. This has resulted in higher costs for bringing gold into the country, directly impacting the domestic market. As the PKR continues to weaken, it has become less favorable for investors to hold the local currency, which has further driven them towards investing in gold.
Investors and traders in Pakistan have been closely monitoring the fluctuations in gold prices, adjusting their strategies to capitalize on the market dynamics. Gold remains a popular choice for those seeking a stable investment in times of economic uncertainty, as it tends to retain its value over the long term.
While the rising gold prices may bring joy to those who have already invested in the precious metal, it can be a concern for consumers who were considering purchasing gold for personal use or as part of cultural traditions, such as weddings and other celebrations. The increase in gold rates might prompt consumers to reconsider their plans or look for alternative options.
This recent hike in gold prices is part of a broader global trend where precious metals, including gold, have become a favored choice for investors seeking refuge from market volatility and economic instability. As the world grapples with various economic and geopolitical challenges, gold is expected to maintain its status as a reliable and sought-after investment option.
Market experts suggest that the volatility in both international and domestic markets will continue to influence gold prices in the near future. Additionally, the performance of the Pakistani Rupee against the US dollar remains a critical factor to watch, as it has a direct impact on the cost of imports and, subsequently, the local gold market.
