Karachi, August 31, 2024 – Gold prices in Pakistan surged to a near-record high today, defying the trend in international markets where prices saw a decline.
In a surprising twist, the domestic gold market showed resilience, with the 24-karat gold per tola rising by PKR 1,000 to reach PKR 262,500, up from the previous close of PKR 261,500. This brings it close to the all-time high of PKR 263,700, recorded just last week on August 24, 2024.
Similarly, the price of 24-karat gold per 10 grams increased by PKR 857, closing at PKR 225,051 from the previous rate of PKR 224,194 in local markets. The consistent rise in gold prices in Pakistan is particularly noteworthy given the decline in the global market. Internationally, gold prices fell by $13, closing at $2,503 per ounce, down from the previous close of $2,516.
Despite the drop in international gold prices, the local market in Pakistan continues to see an upward trend. This anomaly can be attributed to several factors, including the local economic conditions, currency exchange rates, and market demand. Pakistan, being a net importer of gold, is heavily influenced by international market trends; however, local market dynamics also play a significant role in determining prices.
Currency devaluation and inflation are major factors contributing to the rising gold prices in Pakistan. With the Pakistani rupee weakening against the US dollar, the cost of importing gold has increased, thereby pushing up local prices. Additionally, gold is often seen as a hedge against inflation, leading to increased demand in times of economic uncertainty. This demand can drive prices higher, even when international markets are experiencing a decline.
Market experts suggest that the current trend may continue in the short term, given the ongoing economic challenges and fluctuations in the currency exchange rates. “The gold market in Pakistan is showing signs of strength despite global trends. It’s a reflection of the local economic conditions and the ongoing uncertainty in the financial markets,” said a Karachi-based bullion dealer.
Looking ahead, gold prices in Pakistan are expected to remain volatile, influenced by both international market conditions and domestic economic factors. Investors are advised to keep a close watch on global price movements and the local economic situation to make informed decisions. As gold approaches its record highs once again, the market is bracing for further fluctuations in the coming days.
The resilience of gold prices in Pakistan, despite a global decline, highlights the complex interplay of local and international factors that influence commodity prices. As economic conditions remain uncertain, gold continues to be a preferred asset for investors looking to safeguard their wealth.
