Karachi, October 18, 2024 – Gold prices in Pakistan surged to a record-breaking Rs 280,900 per tola on Friday, driven by rising demand and a sharp increase in international markets.
The 24-karat gold price jumped by Rs 3,000 from the previous day’s close of Rs 277,900 per tola, marking the third consecutive session of significant gains.
This increase also affected the price of gold per 10 grams, with the rate climbing by Rs 2,572 to reach Rs 240,826, up from the previous day’s close of Rs 238,254. The continuous upward trend in gold prices has put a strain on local buyers, especially ahead of the wedding season when demand typically spikes.
The local bullion market, which closely follows global trends, saw these price increases primarily due to the international rally in gold prices. On the global front, gold saw a sharp rise of $30, closing at $2,712 per ounce from the previous day’s rate of $2,682. This surge was fueled by growing uncertainty in global financial markets, making gold an attractive asset for investors seeking safety.
Global Market Uncertainty Drives Demand
Analysts attribute the rise in international gold prices to several key factors. Geopolitical tensions, concerns over inflation, and uncertainty surrounding interest rate policies by major central banks have led investors to flock to safe-haven assets like gold. With the U.S. Federal Reserve hinting at possible delays in interest rate hikes and ongoing concerns about a global economic slowdown, gold has seen a significant boost.
Pakistan’s currency depreciation against the U.S. dollar has also exacerbated the rise in gold prices locally. The Pakistani rupee has been under pressure due to external debt obligations, declining foreign reserves, and inflationary pressures, making imported commodities like gold more expensive for the domestic market.
Implications for the Local Market
The spike in gold prices is likely to have a significant impact on consumers in Pakistan, especially those purchasing gold for weddings and other cultural events. Many jewelers have reported a slowdown in sales as buyers grapple with the rapidly rising prices.
Despite the short-term pressure on consumers, market experts believe that gold will continue to attract investors, particularly as uncertainty in the global economy persists. With no immediate signs of stabilization in global markets, gold may remain on an upward trajectory, potentially setting new records in the days ahead.
Local investors are now keenly watching both the global and domestic factors to assess the future direction of gold prices.