Karachi, August 23, 2024 – Gold prices in Pakistan soared to a historic high on Friday, reaching Rs 262,000 per tola despite a significant decline in the international markets.
The 24-karat gold price per tola increased by Rs 200 from the previous day’s closing of Rs 261,800, continuing its upward trajectory in the domestic market.
Similarly, the price of 24-karat gold per 10 grams rose by Rs 172, closing at Rs 224,623 compared to the previous day’s rate of Rs 224,451. This persistent increase in gold prices has left market analysts and investors both surprised and concerned as local prices continue to break records, even when global trends suggest otherwise.
On the international front, gold prices experienced a notable decline, dropping by $12 to close at $2,472 per ounce, down from the previous day’s close of $2,508 per ounce. This disparity between the domestic and international markets has sparked discussions among market experts about the underlying factors driving these local price hikes.
Analysts attribute the recent surge in gold prices within Pakistan to the rapid depreciation of the Pakistani rupee. As a country heavily reliant on imported gold, fluctuations in the local currency significantly impact the cost of precious metals. “The decline in the rupee’s value against major currencies has directly inflated the prices of imported commodities, including gold,” explained a market analyst. “This situation has created a divergence between local and international prices.”
The depreciating rupee has compounded the pressure on local gold prices, making it more expensive for consumers to purchase the precious metal. This trend is particularly concerning for investors and consumers alike, as gold is traditionally viewed as a safe haven during times of economic uncertainty.
The continued rise in gold prices is expected to influence consumer behavior, especially as gold is a popular commodity in Pakistan, often used in jewelry and as a hedge against inflation. With prices reaching unprecedented levels, demand dynamics could shift, potentially dampening consumer enthusiasm for gold purchases in the short term.
The current economic landscape, marked by currency volatility and fluctuating commodity prices, has prompted analysts to suggest that gold prices may continue to climb if the rupee does not stabilize. “Unless we see a significant improvement in the rupee’s strength, local gold prices are likely to remain elevated,” another analyst predicted.
