Karachi, November 13, 2023 – Gold rates in Pakistan experienced a notable increase on Monday, November 13, 2023, with a surge of Rs 800, driven by a positive trend in the global markets.
The 24-karat gold, a benchmark in the local markets, saw a rise from the previous level of Rs 211,000 to Rs 211,800. Similarly, the price for 24-karat gold per 10 grams witnessed an uptick of Rs 686, reaching Rs 181,584 from its earlier position at Rs 180,898 in the domestic markets.
Market analysts have attributed this surge in local gold prices to the positive momentum observed in the international markets. Globally, gold experienced an increase of $2, reaching $1,960 per ounce compared to its previous level of $1,958. The rise in international prices has invariably influenced the local market, prompting an increase in gold rates for consumers in Pakistan.
One significant factor contributing to the surge in gold prices is the ongoing depreciation of the Pakistani Rupee (PKR) against the US dollar. The local currency has been on a downward trajectory for the 14th consecutive session against the US dollar, with the latest losing streak extending from October 20, 2023, to November 10, 2023. During this period, the Pakistani Rupee experienced a substantial decline of PKR 8.24 or 2.95 percent.
The continuous depreciation of the PKR has added pressure to the domestic gold market, as the precious metal is traded globally in US dollars. A weaker local currency makes importing gold more expensive, leading to higher prices for consumers in Pakistan.
Experts suggest that the depreciation trend in the Pakistani Rupee against the US dollar is primarily driven by a variety of factors, including economic uncertainties, trade imbalances, and geopolitical developments. The 14-session losing streak reflects the challenges faced by the local currency, raising concerns among investors and consumers alike.
As a result of these intertwined factors, the local gold market is experiencing heightened volatility, and consumers are advised to closely monitor developments in both global and domestic economic landscapes. The surge in gold prices serves as a reminder of the interconnectedness of international and local markets, with fluctuations in one arena having a cascading effect on the other.
While the current rise in gold rates may present challenges for consumers, it also underscores the importance of staying informed about global economic trends and currency dynamics. As the situation continues to evolve, market participants will be closely watching for any further developments that could impact the trajectory of gold prices in Pakistan and around the world.
