Karachi, July 6, 2023 – In a surprising turn of events, the gold rate in Pakistan witnessed a significant surge on Thursday, defying the sharp decline recorded in the international market.
The surge comes as a surprise to many investors and experts who were expecting a further decline in gold prices.
According to market reports, the price of 24-karat gold per tola increased by Rs1,800, reaching a closing value of Rs207,800 in the local market. Similarly, the price of 24-karat gold per 10 grams witnessed a notable increase of Rs1,543, closing at Rs178,155.
Conversely, the international market experienced a substantial decline in gold prices, with the rate plummeting by $23 to reach $1,905 per ounce. This decline is attributed to several factors, including global economic trends, investor sentiment, and fluctuations in the US dollar.
Interestingly, the gold rate in Pakistan surged despite the local currency gaining strength against the US dollar. The Pakistani Rupee (PKR) made significant gains, appreciating by 37 paisas to close at PKR 277.04 to the dollar in the interbank foreign exchange market, compared to the previous rate of $277.41.
The unexpected increase in the gold rate within the local market has sparked curiosity among investors and traders. Market analysts are closely monitoring the situation to understand the factors contributing to this surge, as it defies the usual inverse relationship between gold prices and the strength of the US dollar.
Gold has always been considered a safe-haven investment during times of economic uncertainty and market volatility. Investors often flock to gold as a means to hedge against inflation and protect their wealth. The recent surge in the gold rate in Pakistan suggests that local investors might be seeking refuge in the precious metal amid concerns over the global economic outlook.
Experts believe that geopolitical tensions, economic data releases, and fluctuations in the stock market could be influencing local investors’ decisions to invest in gold. With the decline in international gold prices, Pakistani investors might view this as an opportune moment to enter the market and take advantage of the lower rates.
While the reasons behind the surge in the gold rate in Pakistan remain unclear, market participants are eagerly awaiting further developments. The coming days will provide a clearer picture of whether this increase is a temporary anomaly or a sign of a new trend in the gold market.
As the Pakistani Rupee continues to strengthen and international markets stabilize, it remains to be seen how the gold rate will react and whether it will maintain its upward trajectory or return to a downward trend. Investors and traders are advised to stay vigilant and closely monitor market dynamics to make informed decisions regarding their gold investments.
