Karachi Bullion Market Sees Rs 400 Surge in Gold Prices

Karachi Bullion Market Sees Rs 400 Surge in Gold Prices

Karachi, June 27, 2024 – The bullion markets in Karachi witnessed a notable surge in gold prices on Thursday, with an increase of Rs 400 per tola despite a decline observed in international markets.

The price of 24-karat gold per tola climbed to Rs 241,000 from the previous day’s closing of Rs 240,600 in the domestic bullion market. Similarly, the price of 24-karat gold per 10 grams rose by Rs 343, reaching Rs 206,619 from the previous day’s closing of Rs 206,276.

Local market experts attributed the price increase to a surge in demand within the domestic market. This local demand-driven price hike occurred even as global gold prices experienced a downturn.

In the international bullion markets, the price of gold recorded a decline of $9, settling at $2,304 per ounce compared to the previous day’s closing of $2,313 per ounce. This decrease in global prices, however, did not influence the local market trends due to the heightened domestic demand.

The bullion market in Karachi has been known for its sensitivity to local market conditions. Experts suggest that various factors, such as wedding season demand, investor behavior, and economic conditions, often lead to fluctuations in gold prices irrespective of international trends.

According to Shaukat Ali, a prominent bullion trader in Karachi, the current increase in gold prices is primarily due to a surge in purchases ahead of the upcoming wedding season. “We have observed a significant rise in gold buying as families prepare for weddings. This seasonal demand often pushes the prices up,” he explained.

Furthermore, some market analysts believe that the ongoing economic uncertainties and inflation concerns are driving people to invest in gold as a safe haven. This trend has contributed to the local price hike despite the global price drop.

The disparity between the local and international gold prices highlights the unique dynamics of the Karachi bullion market. While international factors do play a role, local demand and market sentiments often have a more direct impact on pricing.

As the wedding season approaches and economic conditions remain unpredictable, the Karachi bullion market is expected to continue experiencing fluctuations. Buyers and investors are advised to stay informed about both local and international market trends to make well-informed decisions.

In conclusion, the Rs 400 surge in gold prices in Karachi’s bullion market underscores the influence of domestic demand on local pricing, presenting a contrast to the declining trend observed in global markets.