Karachi, April 19, 2024 – The gold rates surged by Rs 500 in Pakistan on Friday, mirroring the upward trend seen in international markets. The price hike has been attributed to various factors affecting the global economy and investor sentiment.
In the domestic markets, the price of 24-karat gold per Tola rose to Rs 250,700, marking a significant increase from the previous day’s closing rate of Rs 250,200. This upward movement follows a recent peak on April 17, 2024, when the price reached a record high of Rs 251,900 per Tola.
Furthermore, the price of 24-karat gold per 10 grams also experienced a notable increase, climbing by Rs 429 to reach Rs 214,935 compared to the previous day’s closing rate of Rs 214,506.
Analysts in the bullion markets have pointed to the prevailing trend in international markets as a primary driver behind the surge in domestic gold rates. Globally, the price of gold rose by $5 per ounce, closing at $2,400, as compared to the previous day’s closing rate of $2,395. This upward movement underscores the continued appeal of gold as a safe-haven asset amidst economic uncertainties and geopolitical tensions.
The increase in gold prices comes amid a backdrop of several key factors influencing global markets:
1. Geopolitical Tensions: Ongoing geopolitical tensions in various regions have fueled investor concerns, prompting them to seek refuge in safe-haven assets like gold.
2. Inflationary Pressures: Persistent inflationary pressures in major economies, coupled with central banks’ accommodative monetary policies, have heightened inflation expectations, thereby boosting the demand for gold as a hedge against inflation.
3. Volatility in Financial Markets: Heightened volatility in financial markets, driven by uncertainties surrounding global trade, monetary policies, and the COVID-19 pandemic, has bolstered the appeal of gold as a store of value.
4. Currency Fluctuations: Fluctuations in major currencies, particularly the US dollar, have also influenced gold prices, as a weaker dollar typically makes gold more attractive to investors holding other currencies.
As investors navigate these uncertainties, gold continues to be sought after as a reliable asset for preserving wealth and diversifying investment portfolios.
Looking ahead, market participants will closely monitor developments on the geopolitical front, economic indicators, and central bank policies for further insights into the direction of gold prices. While short-term fluctuations are expected, the underlying factors supporting gold’s appeal are likely to sustain its upward trajectory in the medium to long term.
