Karachi, September 25, 2024 – Gold prices in Pakistan soared to a new record high on Wednesday, with the 24-karat per tola price surging to Rs 275,500. This sharp increase, amounting to Rs 2,500 from the previous day’s record of Rs 273,000, reflects rising trends in the global markets, as the value of gold continues to escalate internationally.
In the domestic markets, gold prices have shown a consistent upward trend in recent weeks. The price for 24-karat gold per 10 grams also saw a significant increase, rising by Rs 2,144 to reach Rs 236,197. This is up from the previous day’s closing price of Rs 234,053, further contributing to concerns among local consumers and investors who rely on gold as a traditional store of value and investment.
The surge in domestic gold prices is directly tied to the global rise in the value of the precious metal. In international markets, gold prices jumped by $25 per ounce, bringing the price to $2,653 per ounce, up from $2,628 the previous day. Market analysts attribute this rise to various factors, including ongoing global economic uncertainties, inflation concerns, and fluctuations in major currencies, all of which tend to drive investors toward gold as a safe haven asset.
Impact on Pakistan’s Economy:
Gold plays a significant role in Pakistan’s economy, especially in the context of its large jewelry industry and cultural significance. However, the rising cost of gold also poses challenges for the country. Pakistan relies heavily on gold imports to meet the demand for jewelry manufacturing, and any increase in global gold prices has a direct impact on domestic prices due to the reliance on foreign exchange for imports.
The record-breaking gold prices are causing concerns among jewelry manufacturers, traders, and consumers. For many Pakistanis, gold is not just an investment but also a crucial part of cultural traditions, particularly during weddings and other significant events. With prices reaching unprecedented levels, affordability has become a growing issue for those looking to purchase gold for personal use or as a gift.
Market Reactions:
According to experts, the continued rise in global gold prices is expected to keep pushing domestic prices higher. Many in the bullion market believe that until there is a stabilization in international markets, particularly regarding inflation and economic instability, the demand for gold as a safe investment will continue to rise.
Given the current trends, the gold market in Pakistan is expected to remain volatile, with prices likely to fluctuate based on global economic indicators. This new record has solidified gold’s position as a critical investment option for Pakistanis amid ongoing economic uncertainty.
