Karachi, July 27, 2023 – Gold prices in Pakistan experienced a significant surge of Rs 2,600 per tola on Thursday, attributed to the upcoming Muharram holidays.
The increase in demand for the precious metal was observed as investors sought a safe haven for their investments ahead of the three-day long religious observance.
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In the local market, the price of 24 karat gold per tola rose by Rs 2,600, reaching a new high of Rs 224,700. Simultaneously, the rate for 24 karat gold per 10 grams dipped by Rs 2,230, settling at Rs 192,644.
Financial analysts believe that the spike in gold purchases can be attributed to investors’ desire to safeguard their wealth during the Muharram holidays, a time when markets are closed, providing limited investment opportunities. This trend is common during religious festivals and extended holidays, as people often choose to park their funds in safe-haven assets like gold.
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The holiday period in question is set to begin soon, with the markets remaining closed for the next three days and set to reopen on Monday, July 31, 2023.
Furthermore, the increase in domestic gold prices could be partly influenced by the trends in the international markets. Globally, gold prices also witnessed a rise, with the precious metal gaining $3 to reach $1,975 per ounce. This international uptrend might have contributed to the overall hike in gold prices in Pakistan.
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As investors and traders monitor the market during the holiday period, the gold rates may continue to fluctuate. The situation will be closely watched by financial experts to assess any lasting impact on gold prices once the markets reopen next week.
It is worth noting that gold has traditionally been considered a reliable investment option during periods of uncertainty and economic instability. With the current global economic situation and geopolitical tensions, many investors turn to precious metals like gold to safeguard their wealth from potential market volatilities.
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As the holiday season commences and the markets take a brief pause, investors and analysts alike will keenly observe the gold market’s performance in the coming days. Any further developments in the international markets could also have implications on the future of gold rates in Pakistan.
