Karachi, September 16, 2024 – Gold prices in Pakistan surged to a new record high of Rs 268,000 per tola (24-karat) on Monday, driven by escalating prices in the international bullion markets.
The price increase comes as the country grapples with a volatile economic environment and rising inflation, making gold an increasingly attractive investment.
The 24-karat gold per tola saw an increase of Rs 1,700 from the previous record high of Rs 266,300, which was set just a day before. Similarly, the price of 24-karat gold per 10 grams rose by Rs 1,458, reaching Rs 229,767 from its prior closing price of Rs 228,309 in local markets.
The Pakistani bullion market attributes the continuous surge in gold prices to the global market, where gold prices jumped by $10 per ounce, bringing it to $2,587, up from the previous close of $2,577 per ounce. This upward trend in international markets has had a direct impact on Pakistan, a country that relies heavily on gold imports for its jewelry manufacturing industry.
Factors Driving the Surge
The primary factor behind this unprecedented rise in gold prices is the significant movement in international gold prices. Gold has been climbing globally due to a combination of geopolitical tensions, rising inflation, and weakening currencies, all of which are contributing to an increased demand for safe-haven assets like gold. The rise in demand has driven prices higher, and as Pakistan is a net importer of gold, the domestic market feels the immediate impact of these international shifts.
Additionally, the devaluation of the Pakistani rupee against the U.S. dollar has also played a key role in the rising cost of gold. Since gold is priced in dollars in the international market, any weakening of the local currency leads to an increased cost for domestic buyers, further inflating prices.
Impact on Local Markets
This price surge has placed added pressure on the already struggling local jewelry industry, which heavily relies on gold imports. The high prices have led to reduced consumer demand for gold jewelry, as buyers seek alternatives or delay purchases in hopes of a price reduction.
As global uncertainty continues, experts predict that gold prices may rise further in the coming months, leaving Pakistan’s local markets and consumers to face even higher costs.
