Karachi, February 19, 2024 – Gold prices experienced a significant boost in Pakistan, climbing by Rs 1,100 on Monday, attributed to a robust uptrend in the international markets.
The local bullion markets observed a surge in demand, resulting in the gold 24-karat per tola closing at Rs 214,300, marking a noteworthy increase from the previous day’s closing at Rs 213,200.
Similarly, the gold 24-karat per 10 grams witnessed a rise of Rs 943, concluding the day at Rs 183,728, up from the previous closing of Rs 182,785 in the domestic markets. Analysts closely monitoring the situation in the local bullion markets pointed to the upward trajectory in global markets as the driving force behind the surge in precious metal prices.
In the international arena, gold exhibited resilience and gained $8 to settle at $2,042 per ounce. This marked a notable uptick from the previous close of $2,034, reinforcing the positive sentiment surrounding the precious metal. The increase in global gold prices has been attributed to various factors, including economic uncertainties, geopolitical tensions, and the overall investor appetite for safe-haven assets.
Experts believe that the escalating geopolitical tensions in certain regions have led investors to seek refuge in traditional safe-haven assets like gold. The precious metal has historically served as a store of value during times of uncertainty, and recent geopolitical events have heightened the appeal of gold as a reliable investment option.
Furthermore, economic uncertainties stemming from various parts of the world have contributed to the surge in gold prices. Investors are turning to gold as a hedge against inflation and currency devaluation, given its intrinsic value and stability. The ongoing global economic challenges, coupled with concerns about the sustainability of certain currencies, have fueled the demand for gold as a reliable asset class.
The positive movement in gold prices is also being attributed to increased buying activity from central banks and institutional investors. Central banks, in particular, have been diversifying their reserves, and the allure of gold as a tangible and universally accepted asset has prompted significant investments.
While the rise in gold prices may bring cheer to investors and traders in the precious metals market, it also underscores the prevailing economic uncertainties and the need for diversified investment portfolios. As the global economic landscape continues to evolve, market participants are likely to closely monitor gold prices for signals of potential shifts in market sentiment and risk appetite.
The surge in gold prices by Rs 1,100 in Pakistan on February 19 is reflective of the broader global trend, where geopolitical tensions, economic uncertainties, and increased demand from institutional investors contribute to the attractiveness of gold as a safe-haven asset. As the world grapples with ongoing challenges, gold remains a key player in the investment landscape, providing stability and value for those seeking refuge from market volatility.
