Karachi, November 15, 2023 – Gold prices in Pakistan witnessed a significant spike of Rs 2,000 on Wednesday, driven by intense pressure from global markets.
The surge has impacted both the 24-karat gold per Tola and 10 grams, reflecting the volatility and sensitivity of the precious metal to international market dynamics.
As of the latest market update, the 24-karat gold per Tola has surged to Rs 214,800, marking a notable increase from the previous day’s closing at Rs 212,800 in local markets. Similarly, the 24-karat gold per 10 grams experienced an uptick of Rs 1,714, reaching Rs 184,156 from the previous day’s closing figure of Rs 184,442 in domestic markets.
Market analysts have attributed this abrupt escalation in gold prices in the local markets to a sharp rise in the prices of precious metals globally. The international gold market saw a $23 increase, reaching $1,988 per ounce from the previous day’s closing at $1,965.
The gold market in Pakistan is intricately linked to global prices and the local exchange rate. One of the contributing factors to the surge is the ongoing depreciation of the Pakistani Rupee (PKR) against the US dollar. The PKR has been on a downward trajectory for the past 16 consecutive sessions in the interbank foreign exchange market.
Closing at PKR 287.87 in the latest session, the Pakistani Rupee has experienced a continuous decline of PKR 9.08 or 3.16 percent against the US dollar since October 20, 2023, when it stood at PKR 278.79. This sustained weakening of the PKR against the greenback has contributed to the increased cost of imported commodities, including gold.
The global market pressures on gold are multifaceted, including concerns about inflation, economic uncertainties, and fluctuations in currency values. As investors seek safe-haven assets, gold often experiences increased demand, driving up prices.
The impact of these rising gold prices is significant for consumers, jewellers, and investors alike. Consumers may find their purchasing power affected, jewellers may face challenges in managing inventory and pricing, and investors will closely monitor market trends for potential opportunities or risks.
While the surge in gold prices is a notable economic development, it also underscores the interconnectedness of global and local markets. As Pakistan navigates these fluctuations, market participants will closely monitor international trends and local economic indicators for insights into the trajectory of gold prices in the coming days.
