Karachi, October 21, 2024 – The upward trajectory of gold prices in Pakistan showed no signs of slowing down on Monday, as the precious metal surged to a new all-time high of Rs 282,300 per tola. This marks the fifth consecutive record-breaking high, underscoring the persistent demand and market volatility that has gripped the nation’s gold markets.
The price of 24-karat gold increased by Rs 500 from Saturday’s closing rate of Rs 281,800, according to figures released by the domestic bullion markets. Additionally, the price for 24-karat gold per 10 grams witnessed a significant rise of Rs 429, settling at Rs 242,027 compared to the previous closing of Rs 241,598. These unprecedented price levels have placed further strain on consumers and investors who are increasingly turning to gold as a hedge against economic uncertainty.
Market experts attribute the relentless climb in local gold prices to the surge in international gold markets. On the global stage, gold saw an uptick of $5 per ounce, reaching $2,726 from the previous close of $2,721. This global trend is largely driven by escalating geopolitical tensions in the Middle East, particularly the ongoing conflict, which has heightened demand for safe-haven assets like gold.
Pakistan’s reliance on gold imports exacerbates the impact of international market fluctuations. With the rupee already under pressure due to inflation and external debt, the rising cost of imported gold is directly contributing to the record-breaking price hikes in the domestic market. The fragile economic situation, coupled with global uncertainties, has pushed gold prices to heights previously unimaginable, leaving local consumers with fewer options.
“Gold prices are closely tied to international market conditions, and with the turmoil in the Middle East, demand for gold as a safe investment continues to rise,” said a bullion market analyst. “In Pakistan, the high dependence on imported gold means we are more vulnerable to these price hikes. Until the situation stabilizes globally, we can expect prices to remain elevated.”
The continued increase in gold prices poses a challenge to buyers, particularly for those involved in the jewelry trade and investors seeking stability amidst currency fluctuations. With no immediate signs of relief on the horizon, gold could continue to climb, further straining household budgets and investment portfolios across Pakistan.