Karachi, July 19, 2023 – The gold rate in the domestic markets experienced a substantial increase of Rs 5,400, driven by the continued fall in the value of the Pakistani Rupee (PKR).
This surge in gold prices has left investors and consumers concerned as the rupee struggles against foreign currencies.
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As of today, the price of 24 karat gold per tola reached an all-time high of Rs 226,400 in the local markets, representing a significant increase of Rs 5,400. Similarly, the price of 24 karat gold per 10 grams also saw a substantial surge, rising by Rs 4,630 to reach Rs 194,101.
Market analysts have attributed the sharp increase in gold rates to the persistent depreciation of the Pakistani Rupee over the past few days. The local currency has been facing a challenging period in the foreign exchange market, with the PKR recording a decline of 76 paisas to close at PKR 283.80 against the US dollar on Wednesday.
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Furthermore, the situation has been exacerbated by a corresponding increase in gold prices on the international market. The global price of gold rose by $6, culminating at $1,973 per ounce, which has further impacted the local rates of precious metals in Pakistan.
An essential point to consider is that gold import in Pakistan is conducted in dollars. Therefore, any fluctuations in the exchange rate and international gold prices have a direct and immediate impact on the local rates of precious metals, resulting in higher costs for consumers and traders alike.
The increasing trend in gold rates has raised concerns among investors, as well as ordinary citizens who rely on gold for various purposes, including jewelry, investments, and savings. The rising cost of gold can potentially lead to increased inflation, affecting the overall economic landscape of the country.
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The government and relevant authorities are closely monitoring the situation, as the decline in the value of the Pakistani Rupee and the surge in gold prices pose significant challenges to the country’s economic stability. Various measures may be taken to stabilize the currency and manage the impact on the precious metals market.
In the meantime, consumers and investors are advised to stay vigilant and informed about the changing market conditions. Making informed decisions and seeking professional financial advice can help mitigate the effects of these fluctuations on individual finances and investments.
READ MORE: Gold Rate in Pakistan Witnesses Sharp Increase Amid PKR Decline
As the situation unfolds, market experts will be keeping a close eye on the performance of the rupee and its potential impact on the precious metals market. For now, consumers are advised to brace themselves for higher gold prices and be cautious about making any significant financial commitments amid this volatile economic climate.
