Karachi, October 29, 2024 – On Tuesday, Pakistan’s gold prices reached near-record levels as the rate for 24-karat gold per tola climbed to Rs 285,000. This significant rise of Rs 1,600 from the previous day’s price of Rs 283,400 reflects a broader trend of volatility influenced by global market uncertainties.
Just last week, on October 23, the domestic market saw an all-time high when gold prices peaked at Rs 285,400 per tola, signaling the ongoing challenges faced by investors and consumers alike.
The cost of 24-karat gold per 10 grams also rose in Pakistan’s local market, increasing by Rs 1,372 to close at Rs 244,342, up from Monday’s price of Rs 242,970. This rise has affected both consumers and businesses, as jewelry shops and bullion traders anticipate higher demand amid escalating costs. Gold’s price trajectory in Pakistan closely aligns with shifts in international markets, which have been under pressure due to rising geopolitical and economic concerns.
Market analysts attribute this uptrend primarily to heightened geopolitical tensions in the Middle East. These tensions have disrupted investor confidence worldwide, leading to a notable surge in safe-haven demand for gold. According to a senior bullion market expert, “The ongoing uncertainty, particularly in the Middle East, is pushing investors towards gold, which they perceive as a reliable hedge during times of risk and instability. As a result, gold has witnessed increased trading volumes globally, which has a direct impact on local markets here in Pakistan.”
Internationally, gold saw a similar trend, climbing by $16 per ounce to settle at $2,755, up from the previous day’s closing of $2,739. This global surge reflects the broader economic picture, where concerns over inflation, currency volatility, and slowdowns in major economies are leading investors to diversify into gold. Such price trends are being watched closely by central banks and financial markets worldwide, as gold serves as an indicator of global economic sentiment and risk aversion.
Traders in Pakistan expect further fluctuations in gold prices as these global concerns persist. For many, gold remains a crucial hedge against currency devaluation, making it an attractive option during times of both economic and political uncertainty. This is particularly significant in countries like Pakistan, where economic stability can be impacted by external factors and currency shifts.
As the international and domestic markets continue to respond to the evolving global landscape, analysts suggest that gold prices may remain high in the near term. This trend is likely to affect the purchasing behavior of consumers, with increased demand expected from those looking to invest in the metal as a safe-haven asset.