Karachi, August 2, 2024 – Gold prices soared to unprecedented heights in Pakistan on Friday, reaching a new record of Rs 257,300 per tola. This significant rise, attributed to escalating trends in international markets, marks a notable moment for the precious metal within Pakistan market.
The 24-karat gold per tola witnessed an increase of Rs 2,400 from the previous day’s closing price of Rs 254,900, which itself was a record high in Pakistan. Similarly, the price of 24-karat gold per 10 grams climbed by Rs 2,057, reaching Rs 220,593 from the previous close of Rs 218,536.
Analysts are attributing this surge in gold prices in Pakistan to the upward trends observed in global markets. On the international front, gold saw a substantial increase of $26, ending at $2,458 per ounce from the previous day’s closing price of $2,432.
The rise in gold prices in Pakistan can be linked to various factors impacting the global economy. The international market is experiencing heightened demand for gold, often seen as a safe haven during economic uncertainties. The ongoing geopolitical tensions and fluctuations in major currencies have also contributed to this surge.
Local jewelers and traders have expressed mixed reactions to this significant price hike. While some view it as an opportunity for profit, others are concerned about the potential impact on consumer buying behavior. “The continuous rise in gold prices is unprecedented. It could deter customers from making new purchases, especially those who buy gold for weddings and other significant events,” said Asif Khan, a jeweler in Karachi’s bustling gold market.
Furthermore, the weakening of the Pakistani Rupee against the US Dollar has exacerbated the situation. The devaluation of the local currency means that gold, which is priced in dollars, becomes more expensive in rupee terms. This dual impact of rising international prices and a depreciating rupee has pushed gold prices to new heights.
Economic analysts are closely monitoring the situation, predicting that if the current trends continue, gold prices might witness further escalation. “With the global economy in a state of flux, and inflationary pressures mounting, gold is likely to maintain its upward trajectory,” said an economic analyst.
Investors are also eyeing gold as a viable investment option amidst the volatility in the stock markets and uncertainties surrounding other investment avenues. The traditional perception of gold as a hedge against inflation and currency depreciation is driving more investors towards this precious metal.
As the gold prices continue to rise, it remains to be seen how the market dynamics will unfold in the coming days. For now, the new record of Rs 257,300 per tola stands as a testament to the evolving economic landscape both locally and globally.