Karachi, September 5, 2024 – Gold prices in Pakistan surged by Rs 2,000 per tola on Thursday, driven by a notable upswing in international markets. The price of 24-karat gold per tola rose to Rs 262,100 from the previous day’s closing rate of Rs 260,100 in local markets, marking a significant increase.
Similarly, the price of 24-karat gold per 10 grams climbed by Rs 1,714, reaching Rs 224,708, up from Rs 222,994 the day before. The sharp rise in domestic prices closely follows trends in the global market, where gold witnessed a substantial jump of $22 per ounce. The international price of gold closed at $2,503 per ounce, up from the previous day’s rate of $2,481.
Analysts attributed the surge in gold prices both locally and globally to heightened economic uncertainty and volatility in financial markets. Investors are turning to gold as a safe-haven asset amid fears of a potential economic slowdown, rising inflation, and geopolitical tensions in various regions. “The rising global demand for gold has pushed up prices, and Pakistan, being an import-dependent country, has seen a corresponding increase,” said a local market analyst.
In the domestic context, the depreciation of the Pakistani rupee against the US dollar has further compounded the upward pressure on gold prices. As the local currency weakens, the cost of importing gold becomes higher, translating into steeper prices in the local market. This, in turn, affects consumer purchasing power, as higher gold prices tend to dampen demand, particularly in the jewelry sector, which relies heavily on gold.
While the increase in gold prices has been welcomed by investors and traders who see the commodity as a reliable store of value, it poses challenges for consumers and businesses in the gold market. Many buyers, especially those planning weddings or making significant purchases, may hesitate due to the steep costs, potentially leading to a decline in retail demand.
As the global economic outlook remains uncertain, analysts expect continued volatility in gold prices. “It is likely that gold will continue to fluctuate based on international trends and the strength of the rupee,” noted a market observer. For now, the precious metal remains an attractive investment option for those seeking to hedge against financial risks.
