Karachi, September 11, 2024 – Gold prices in Pakistan soared to an all-time high on Wednesday, touching Rs 264,000 per tola (24-karat) amid surging trends in the international bullion market.
The price of gold increased by Rs 2,300 from the previous day’s closing of Rs 261,700 per tola, setting a new record in the domestic market.
This latest surge marks a significant milestone for the local gold market, with Pakistan previously witnessing a record high of Rs 263,700 per tola on August 24, 2024. The price of 24-karat gold per 10 grams also followed a similar upward trajectory, increasing by Rs 1,972 to close at Rs 226,337, compared to the previous day’s rate of Rs 224,365.
The surge in domestic gold prices mirrors the sharp rise in international markets. On the global front, the price of gold per ounce jumped by $24, reaching $2,524, up from $2,500 the previous day. The international price hikes have been cited as the primary driving force behind the sharp rise in Pakistan, according to local bullion market experts.
“Gold prices are strongly influenced by the international markets, and we have seen a consistent rise in prices globally due to economic uncertainties, inflationary pressures, and fluctuations in the value of the U.S. dollar,” said a bullion market analyst based in Karachi. “Pakistan is no exception, and with the local currency facing devaluation, the impact of rising gold prices is more profound here,” he added.
The recent price hike has also been attributed to increasing investor demand for safe-haven assets such as gold, as geopolitical tensions and economic concerns weigh on global markets. With rising inflation and concerns over global economic stability, many investors are turning to gold to hedge against currency depreciation and market volatility.
Local traders also pointed to a weaker Pakistani rupee as another factor contributing to the escalating gold prices. The rupee has been under pressure due to ongoing economic challenges, including a widening fiscal deficit and external debt repayments. As a result, the increased cost of gold imports has further exacerbated the price surge.
The latest surge in gold prices has sparked concerns among consumers and jewelers alike. While investors may benefit from the rising prices, ordinary consumers looking to purchase gold for personal use, particularly for wedding and festive seasons, are likely to feel the pinch.
With international market trends showing no signs of slowing down, local analysts predict that gold prices in Pakistan could continue to rise in the coming weeks, keeping both buyers and investors on edge.
