Gold Prices Soar by Rs 2,500 per Tola on April 26, 2024

Gold Prices Soar by Rs 2,500 per Tola on April 26, 2024

Karachi, April 26, 2024 – In a striking move in the bullion market, the price of 24-karat gold per tola in Karachi has surged by Rs 2,500, settling at Rs 245,000 as of today, up from Rs 242,500 just a day earlier.

This significant increase continues to highlight gold’s status as a favored safe-haven asset amidst ongoing economic fluctuations.

The rise in gold prices is not isolated to just per tola measurements. The cost of 24-karat gold per 10 grams also saw a substantial increase, climbing Rs 2,143 to reach Rs 210,048, compared to the previous day’s Rs 207,905. These adjustments reflect broader trends observed in the global gold market, where prices escalated by $21, concluding the day at $2,343 per ounce.

The local surge in gold prices follows a recent peak on April 20, 2024, when the price of gold hit an all-time high of Rs 252,200 per tola. Despite a slight pullback since that record, today’s figures still represent a notably high valuation, reinforcing gold’s appeal during times of economic pressure.

Market analysts are attributing this local price rally to several global economic factors, including inflation concerns, shifts in U.S. Federal Reserve policies, and ongoing geopolitical tensions. These elements are driving investors towards gold, viewing it as a more secure investment compared to more volatile assets.

“Gold traditionally acts as a hedge against inflation and economic uncertainty,” explained Amina Razaq, a senior commodities analyst at a Karachi-based trading firm. “With the current international climate, marked by rising interest rates and geopolitical strife, investors are increasingly turning to gold to safeguard their portfolios.”

Further contributing to the upward trend in gold prices is the weakening of the Pakistani Rupee against the dollar, which has made gold imports more expensive, thus inflating local prices. The currency depreciation is a critical factor for countries like Pakistan, where much of the gold demand is met through imports.

Local jewellers have noted a decline in consumer purchases at the retail level due to these high prices. “While investment demand for gold remains strong, the retail segment is definitely feeling the pinch,” commented Haris Ahmed, a jeweller in Karachi’s popular gold market. “Customers are hesitant to buy at these rates, anticipating a possible price correction in the near future.”

Despite the current high prices, market sentiment indicates that gold might continue to experience volatility, with potential further increases if the global economic situation worsens. Investors and consumers alike are advised to stay informed and consider their long-term investment strategies carefully in this dynamic market environment.

As the situation develops, the market will be closely monitoring factors such as inflation rates, currency fluctuations, and international economic policies, all of which are expected to play a crucial role in shaping the future trajectory of gold prices both locally and globally.