KARACHI, July 31, 2024 – The gold prices on Wednesday recorded a surge of Rs 1,200 at the Karachi bullion market, driven by a surge in international markets. The price of 24-karat gold per tola rose to Rs 253,500 from the previous day’s closing of Rs 252,300.
Similarly, the price of 24-karat gold per 10 grams recorded an increase of Rs 1,029, settling at Rs 217,335 from the last day’s closing of Rs 216,306 in the local bullion market of Karachi.
Analysts at the Karachi bullion market attributed the increase in domestic prices of gold to the surge in international markets. The gold price in the international market rose by $27, reaching $2,415 per ounce from the previous day’s closing of $2,388.
“The rise in international gold prices has had a direct impact on the local market,” said a senior analyst at the Karachi bullion market. “Global economic uncertainties and geopolitical tensions have pushed investors towards the safe-haven asset, leading to higher prices worldwide.”
The recent rally in international gold prices has been influenced by several factors, including ongoing inflation concerns, fluctuating currency values, and geopolitical tensions. Investors globally are seeking refuge in gold, which is traditionally viewed as a hedge against economic instability.
“The international gold market is experiencing a significant uptrend, which has translated into higher prices locally,” remarked another market expert. “This trend reflects the interconnected nature of global markets and the impact of international developments on local prices.”
In the local context, the gold price movement is also affected by the exchange rate of the Pakistani rupee against the US dollar. With the rupee facing depreciation pressure, the cost of imported gold tends to rise, adding to the domestic price fluctuations.
Looking ahead, market participants expect the gold prices to remain volatile. The global economic landscape, coupled with local currency dynamics, will continue to influence the bullion market.
“The gold market is highly sensitive to international developments,” noted a trader. “Any major economic event or policy change can lead to swift movements in prices.”