Karachi, September 27, 2024 – Gold prices in Pakistan experienced a minor dip on Friday, yet they remain near record highs, reflecting both global market trends and domestic economic challenges. The price of 24-karat gold per tola (approximately 11.66 grams) fell by Rs 300, settling at Rs 276,700. This is a slight decrease from the previous day’s record high of Rs 277,000, but the value continues to hover near its peak levels.
Similarly, the price of 24-karat gold per 10 grams dropped by Rs 256, ending at Rs 237,226, compared to the last day’s price of Rs 237,482. These changes are being closely monitored by market participants, especially given the broader fluctuations in the international bullion markets.
Experts in Pakistan’s bullion market pointed to a small reduction in international gold prices as a driving factor behind this local decline. Globally, the price of gold slipped by $2, with the metal closing at $2,663 per ounce, down from the previous day’s $2,665 per ounce. This marginal shift in global gold prices has directly influenced the pricing within Pakistan, which closely mirrors trends in international markets.
Despite the slight drop, gold remains near its historical highs due to a combination of economic uncertainties, inflationary pressures, and currency depreciation. The Pakistani rupee has struggled against the U.S. dollar, adding further volatility to commodity prices, including gold. As gold is traditionally seen as a safe-haven asset, demand in Pakistan has surged amid fears of inflation, political instability, and ongoing economic concerns.
The recent increase in interest rates by central banks globally, particularly the U.S. Federal Reserve, has created additional pressures on precious metals. As higher interest rates make non-yielding assets like gold less attractive to investors, some minor corrections in prices were expected. However, due to economic uncertainty and geopolitical tensions, gold prices are expected to remain elevated for the foreseeable future.
For many in Pakistan, gold serves both as an investment and a cultural asset, especially in times of economic difficulty. Its continued high prices pose challenges for buyers, particularly for those purchasing gold for weddings or as a hedge against inflation. However, for those already holding gold, the current levels are seen as an opportunity for profit-taking.
With the global and domestic economic landscape remaining fragile, the future of gold prices in Pakistan remains uncertain, though analysts suggest that major corrections are unlikely in the short term.
