Karachi, September 14, 2024 – Gold prices in Pakistan continued their bullish trend on Saturday, marking another record high as market uncertainty and global trends fueled a surge in demand for the precious metal. According to the latest figures, the price of 24-karat gold rose by Rs 400, reaching Rs 266,300 per tola, surpassing the previous day’s closing of Rs 265,900.
Similarly, the price of 24-karat gold per 10 grams saw an increase of Rs 343, moving from Rs 227,966 to Rs 228,309. The consistent upward momentum in gold prices has been evident over recent weeks as geopolitical uncertainties, inflation concerns, and volatile currency fluctuations drive investors to the safety of gold.
In international markets, gold prices also experienced a notable increase. The precious metal gained $11, bringing the global price to $2,577 per ounce compared to the previous day’s closing of $2,566 per ounce. The international surge in gold prices directly impacts domestic markets, as Pakistan heavily relies on global gold trends to determine its prices.
Bullion market experts attributed this surge in gold prices in Pakistan to the rise in international markets, but they also pointed to local factors exacerbating the trend. Among these is the persistent devaluation of the Pakistani rupee against the U.S. dollar, which inflates the cost of imports, including gold. The rupee’s depreciation has intensified the impact of rising global prices on the local market, making gold more expensive for Pakistani consumers.
Economic uncertainty and inflationary pressures are also key drivers of the increased demand for gold. As inflation continues to erode the purchasing power of fiat currencies, gold remains a hedge for investors looking to preserve their wealth. In Pakistan, where inflation remains high, the demand for gold as a store of value has remained strong, particularly in times of economic instability.
Analysts are closely monitoring global market conditions, with many predicting further increases in gold prices if the current global and domestic economic situations persist. Investors are seeking safe-haven assets, and with global markets remaining volatile, gold appears to be the preferred choice.
With prices at an all-time high, industry insiders advise investors to stay alert to fluctuations in the global markets while keeping an eye on the performance of the Pakistani rupee, which will continue to play a pivotal role in determining the trajectory of gold prices in the country.
