Karachi, September 26, 2024 – The price of gold in Pakistan surged to an unprecedented level of Rs 277,000 per tola (24-karat) on Thursday, reflecting a rising trend in international markets.
The increase of Rs 1,500 from the previous day’s closing price of Rs 275,500 marked a new peak for the precious metal in the country.
Alongside the rise in the per tola price, the rate for 24-karat gold per 10 grams also increased by Rs 1,285, bringing the total to Rs 237,485. This is up from Rs 236,197, the closing price on Wednesday, continuing a pattern of rising gold prices over the past few weeks.
The surge in domestic prices is in line with international market trends. Gold prices on the global market climbed by $12 to reach $2,665 per ounce, compared to the previous close of $2,653. The continuous uptick in global bullion rates is being driven by several economic factors, including inflationary pressures, geopolitical tensions, and fluctuations in currency markets, which have increased demand for gold as a safe-haven investment.
Bullion experts in Pakistan attribute the local price surge to these international dynamics. Since Pakistan imports gold primarily for the manufacturing of jewelry, any change in global prices has a direct impact on local rates. Jewelry exports form a significant portion of Pakistan’s economic activity, and domestic consumption also remains robust, further amplifying the effects of international price fluctuations.
The rise in gold prices comes as the Pakistani rupee continues to face volatility against the US dollar, making gold an attractive store of value for both investors and everyday citizens. As inflation remains a concern and the purchasing power of the rupee weakens, many investors are turning to gold as a hedge against economic uncertainty.
According to analysts, the trend of increasing gold prices is expected to continue in the near future. Global market volatility, particularly influenced by the ongoing geopolitical conflicts and economic instability in major economies, is likely to keep demand for gold strong. This could push prices even higher, with potential new records on the horizon.
For the local market in Pakistan, the surge is a mixed blessing. While it provides a boost for gold investors and those in the jewelry export business, it also makes it more expensive for consumers who wish to purchase gold for personal use, particularly in the upcoming wedding season.
