Karachi, October 22, 2024 – Gold prices in Pakistan reached a historic peak on Tuesday, continuing their upward trend as they soared to a record-breaking Rs 283,400 per tola. This surge marks an increase of Rs 1,100 from the previous day’s closing price of Rs 282,300, reflecting the unrelenting rise of gold in the local market over the past six sessions.
The price of 24-karat gold per 10 grams also climbed significantly, registering a rise of Rs 943 to reach Rs 242,970, up from Rs 242,027 a day earlier. This consistent surge is being attributed to heightened demand in both domestic and international markets, driven by a variety of geopolitical and economic factors.
Experts in Pakistan’s bullion markets point to escalating tensions in the Middle East as a key factor behind the spike in global gold prices. The increased uncertainty has triggered a rush towards gold as a safe-haven asset, pushing its value to new heights in the international markets. On Tuesday, the price of gold increased by $11 per ounce, rising from $2,726 to $2,737.
“Gold prices have been consistently rising due to global instability, especially with the situation in the Middle East. Investors globally are turning to gold, which is seen as a more stable asset in times of uncertainty,” noted a leading bullion trader in Karachi.
Pakistan’s reliance on imported gold to meet local demand for jewelry manufacturing and exports has further contributed to the price hike. The country’s domestic market is closely linked to international fluctuations, and any changes in global prices are quickly reflected in local markets. This interconnection with global trends has led to a significant rise in gold prices, much to the concern of local consumers.
The ongoing surge has caused concern among jewelers and customers alike, with many expressing anxiety over the affordability of gold. The rising costs are making it increasingly difficult for ordinary citizens to purchase gold for traditional purposes, such as weddings, where gold jewelry plays a vital role.
With geopolitical tensions showing no signs of easing and international gold prices continuing to climb, analysts suggest that gold prices in Pakistan may remain on this upward trajectory in the near future. For now, consumers are left navigating the financial challenges posed by these unprecedented increases.