Karachi, April 25, 2024 – The gold market in Pakistan saw a notable increase today with prices per tola rising by Rs 500, aligning with trends in the global market.
The adjustment brings the cost for 24-karat gold to Rs 242,500 per tola, up from yesterday’s Rs 242,000, reflecting sustained volatility in both local and international trading environments.
This increase comes shortly after the local markets experienced a record high on April 20, 2024, when the price of gold surged to Rs 252,200 per tola. Today’s price still reflects a high premium on gold, underscoring the ongoing economic pressures and the allure of the precious metal as a secure investment.
In terms of smaller quantities, the price for 24-karat gold per 10 grams also rose by Rs 429 to settle at Rs 207,905, compared to Rs 207,476 the previous day. This increment, though slight, is part of a broader trend of rising gold prices over the past few weeks, driven by both domestic factors and global market dynamics.
Internationally, gold prices edged higher with the spot price for an ounce of gold increasing by $2 to close at $2,322. This increase in the global markets is believed to be one of the primary catalysts for the rise in domestic gold prices, as Pakistan heavily relies on international gold rates to determine its local market prices.
Market analysts believe that the uptrend in gold prices is influenced by several factors including geopolitical uncertainties, inflationary pressures, and changes in the U.S. dollar’s strength. “The local market is highly sensitive to shifts in the international arena. With the current geopolitical tensions and economic uncertainties, investors are turning to gold as a safer asset, pushing prices upward,” explained Muhammad Sohail, a senior commodities analyst at a local financial services firm.
The Pakistani economy, grappling with inflation and currency devaluation, has seen a surge in investment in gold as it is considered a stable asset that can help preserve value. Families and investors alike continue to trust gold as a hedge against inflation, and this is reflected in the persistent high demand in the domestic market.
“Gold continues to be a popular choice for savings among Pakistani households, not just as an investment but also for cultural reasons such as weddings and other ceremonies,” added Sohail. The cultural importance of gold in Pakistan cannot be underestimated and contributes significantly to its demand.
However, the rise in prices poses challenges for average consumers who find it increasingly difficult to purchase gold, which has traditionally been a popular form of saving and investment. With Ramadan and the upcoming Eid celebrations, the demand for gold is expected to rise further, potentially driving prices even higher in the near term.
Retailers across major cities like Karachi, Lahore, and Islamabad reported an increase in customer inquiries and transactions, indicating a robust demand despite the rising prices. “People are still buying, but they’re more cautious about how much they spend,” said a gold retailer from Karachi’s famous gold market.
As global uncertainties persist, the market outlook remains cautious but optimistic. Investors and consumers are advised to keep a close watch on both global and local economic indicators which significantly impact gold prices. With the wedding season approaching, further fluctuations in gold prices are anticipated, keeping market watchers and consumers on their toes.
