Karachi, March 21, 2024 – Gold prices in Pakistan experienced a significant uptick on Thursday, reaching Rs 232,400 per tola, following a substantial increase in global gold prices.
The price of 24-karat gold per tola surged by Rs 4,600 from the previous day’s closing of Rs 227,800 in the local market. Similarly, the price of 24-karat gold per 10 grams also witnessed a notable increase, rising by Rs 3,943 to end at Rs 199,245 compared to the previous day’s closing of Rs 195,302 in domestic markets.
Experts in the bullion market attributed this surge in domestic gold prices to a sharp rise in international markets. Gold saw a gain of $47, closing at $2,225 per ounce, compared to the previous day’s closing of $2,178 in global markets.
The global increase in gold prices can be attributed to several factors, including geopolitical tensions, economic uncertainties, and inflationary concerns. Investors often turn to gold as a safe-haven asset during times of volatility, leading to increased demand and subsequent price hikes.
Geopolitical tensions in various regions, coupled with ongoing conflicts and diplomatic uncertainties, have fueled market apprehensions, prompting investors to seek refuge in gold. Additionally, concerns over inflationary pressures, driven by rising energy costs and supply chain disruptions, have further bolstered gold’s appeal as a hedge against inflation.
The Federal Reserve’s stance on monetary policy and interest rates also influences gold prices. Any indication of accommodative monetary policies or prolonged low interest rates tends to support gold prices, as it reduces the opportunity cost of holding non-yielding assets like gold.
Furthermore, the weakening of the US dollar against major currencies contributes to the upward trajectory of gold prices. Since gold is priced in US dollars, a depreciation in the dollar makes gold more affordable for investors holding other currencies, leading to increased demand and higher prices.
In Pakistan, the surge in gold prices has implications for consumers and investors alike. While higher gold prices may benefit those holding gold assets as a store of value, it may pose challenges for consumers looking to purchase jewelry or invest in the precious metal.
As global economic uncertainties persist, the outlook for gold prices remains subject to various factors, including geopolitical developments, monetary policy decisions, and market sentiment. Investors and consumers are advised to stay abreast of these developments and exercise caution in their gold-related transactions.
In conclusion, the sharp increase in gold prices in Pakistan reflects the impact of global market dynamics and underscores the role of gold as a safe-haven asset amidst economic uncertainties. As investors navigate volatile market conditions, gold continues to be a favored choice for diversification and wealth preservation.
