Karachi, July 29, 2024 – The gold rates in Pakistan saw a modest increase of Rs 200 on Monday, influenced by a corresponding rise in international markets. The gold 24-karat per tola ended at Rs 252,700, up from the previous day’s closing of Rs 252,500 in local markets across Pakistan.
Similarly, the price of gold 24-karat per 10 grams saw an uptick of Rs 172, reaching Rs 216,850 from the last closing of Rs 216,498 in domestic markets.
Analysts attributed this nominal rise in domestic gold prices to an increase in the international markets, where gold rose by $4 to end at $2,390 an ounce from the last closing of $2,386.
Factors contributing to the increase in international gold prices include heightened geopolitical tensions, inflationary pressures, and a weakening US dollar. These elements have made gold a more attractive investment option, driving demand and consequently pushing up prices.
Local market dynamics in Pakistan also play a role in the pricing of gold. The fluctuation in the Pakistani rupee against the US dollar impacts import costs, as gold is primarily imported. A depreciating rupee can lead to higher gold prices domestically. Furthermore, domestic demand for gold, often driven by cultural and seasonal factors, influences market rates. The wedding season, for instance, typically sees an uptick in demand for gold jewelry, which can lead to price increases.
This recent rise in gold prices comes amidst ongoing economic challenges in Pakistan. Inflation remains a concern, affecting purchasing power and savings. As a hedge against inflation, many investors turn to gold, considering it a stable and reliable store of value. This trend bolsters demand, contributing to price rises.
The global market outlook for gold remains cautiously optimistic. Analysts predict that continued economic uncertainties, such as potential recessions in major economies and fluctuating interest rates, could sustain the upward trajectory of gold prices. However, they also warn that any significant economic recovery or stabilization could temper the demand for gold, potentially leading to price corrections.
In summary, the increase in gold prices in Pakistan is closely tied to international market trends and local economic conditions. As global and domestic factors continue to evolve, the gold market remains a critical area of focus for investors seeking stability in uncertain times.