Karachi, August 22, 2023 – Gold prices experienced a significant and rapid increase on Tuesday, surging by Rs 4,600 per tola in response to the historic depreciation of the Pakistani Rupee (PKR) against the US dollar.
The price of 24-karat gold per tola soared to Rs 234,500 in the local market, marking a substantial increase. Similarly, the price of 24-karat gold per 10 grams rose by Rs 3,944.
READ MORE: Gold Prices Soar by Rs 3,100 as PKR Takes a Dive Against the Dollar
Market analysts have attributed this remarkable upswing in local gold prices to two primary factors. Firstly, the sharp decline in the value of the Pakistani Rupee against the US dollar, with the PKR reaching a historic low of PKR 299.01 in the interbank market on August 22, 2023. This depreciation has prompted investors to turn to gold as a safe-haven asset amid economic uncertainty.
READ MORE: Gold Prices Rise in Pakistan on August 18 Despite Global Market Decline
Secondly, the rise in international gold markets has played a role in the surge of local gold prices. Globally, the price of gold increased by $10, reaching $1,901 per ounce.
The combination of these factors has fueled demand for gold in the local market, driving up its price significantly. Gold has long been seen as a hedge against currency devaluation and economic instability, making it an attractive investment option in times of financial uncertainty.
READ MORE: Gold Rates in Pakistan Climb Up to Rs 225,000 per Tola
As economic conditions continue to evolve, it will be essential for investors and analysts to closely monitor both local and international factors influencing gold prices. The relationship between currency values and precious metals remains a key indicator of market sentiment and economic stability.
READ MORE: Gold Prices Surge as PKR Depreciation Triggers Rally
