Karachi, May 20, 2024 – The price of gold in Pakistan soared to Rs 250,400 per tola on Monday, edging closer to its all-time high. This significant increase of Rs 2,300 from the previous closing of Rs 248,100 marks a substantial rise in the local bullion market.
Similarly, the price of 24-karat gold per 10 grams jumped by Rs 1,972, reaching Rs 214,678 from the previous closing rate of Rs 212,706. This surge in gold prices in Pakistan mirrors the upward trend observed in international markets, where the precious metal reached new heights.
The current record high for gold in Pakistan stands at Rs 252,200 per tola, which was achieved on April 20, 2024. The recent surge suggests that this record could soon be challenged if the upward trend continues.
Analysts at the bullion market have attributed the surge in domestic gold prices to the rising prices in international markets. On the global stage, gold prices increased by $25, reaching a new peak of $2,439 per ounce from the previous closing of $2,414. This increase in the international market is a key driver of the local market’s performance, as Pakistan’s gold prices are heavily influenced by global trends.
The factors contributing to the rise in gold prices globally include economic uncertainty, inflation fears, and geopolitical tensions. Investors often turn to gold as a safe haven during times of economic instability, which drives up demand and prices. Additionally, fluctuations in the US dollar and changes in interest rates can also impact gold prices, with a weaker dollar often leading to higher gold prices.
In Pakistan, the surge in gold prices is also influenced by the local economic conditions, including the value of the Pakistani rupee, inflation rates, and the overall economic outlook. As the rupee weakens against the dollar, the cost of importing gold increases, which is reflected in higher local prices.
The rise in gold prices has significant implications for various stakeholders, including investors, jewelers, and consumers. For investors, the increasing price of gold can offer profitable returns, while for jewelers and consumers, it can mean higher costs for gold jewelry and other products.
As gold prices continue to climb, market participants in Pakistan are closely monitoring both domestic and international developments. The potential for gold to reach or surpass its previous record high adds an element of anticipation and caution in the market.
The next few weeks will be crucial in determining whether gold prices will stabilize or continue their upward trajectory, with many eyes on the global economic indicators that could influence this trend.
