KARACHI, October 4, 2024 – Gold prices in Pakistan experienced a sharp increase on Friday, with a jump of Rs 1,800 per tola, driven by a surge in international gold markets. The price of 24-karat gold per tola rose to Rs 276,200, up from the previous day’s closing of Rs 274,400 in the domestic market.
This significant rise comes as gold prices have been fluctuating over the past few weeks. The precious metal hit an all-time high of Rs 277,000 per tola on September 26, 2024, but has since witnessed volatile movements. Analysts attribute the price volatility to a combination of domestic economic factors and rising global uncertainties.
In addition to the increase in per tola prices, the price of 24-karat gold per 10 grams also saw a notable rise. It increased by Rs 1,543, reaching Rs 236,797 from the previous close of Rs 235,254. This upward trend in gold prices continues to weigh on local markets, where consumers have already been grappling with record-high inflation and a weakening currency.
Market experts explain that the spike in local gold prices is largely a reflection of developments in the international bullion market, where rising geopolitical tensions have sparked a flight to safety among investors. The global gold price surged by $18, closing at $2,660 per ounce, up from the previous day’s rate of $2,642.
The ongoing geopolitical turbulence, particularly in regions of critical economic importance, has spurred heightened demand for safe-haven assets like gold. Investors are seeking refuge in gold as a hedge against market volatility and potential economic instability, resulting in higher demand and subsequent price hikes across global and domestic markets alike.
Local bullion market analysts point out that Pakistan’s gold market is highly sensitive to movements in the international market, where even slight fluctuations can lead to pronounced effects on domestic pricing. With the rupee still under pressure and inflationary forces persistent, any global developments impacting the price of commodities like gold can be immediately felt in local markets.
Despite the rising prices, demand for gold in Pakistan remains relatively steady, driven by cultural factors and a long-standing tradition of using gold as an investment and store of value. However, as gold prices continue to rise, consumers and investors alike will likely feel the pinch, adding further strain to household budgets.
As international market dynamics continue to evolve, analysts suggest that local gold prices will remain sensitive to further global developments, especially in regions prone to geopolitical conflict.