Karachi, July 26, 2024 – Gold prices in Pakistan surged by Rs 1,000 on Friday, driven by a notable rise in global markets. This sharp increase has pushed the price of 24-karat gold per tola to Rs 251,500, up from the previous day’s closing of Rs 250,500 in the bullion markets of Pakistan.
Similarly, the price of 24-karat gold per 10 grams saw a significant jump, increasing by Rs 855 to reach Rs 215,621 from the last day’s closing of Rs 214,763 in local gold markets. This consistent rise in domestic gold prices is closely linked to movements in the international markets, where gold prices also saw an upward trend.
In the global market, gold prices witnessed an increment of $3, reaching $2,373 an ounce from the previous day’s closing of $2,370 an ounce. Analysts have attributed this rise to several factors, including ongoing economic uncertainties, fluctuations in currency values, and increased demand for safe-haven assets.
Economic Uncertainties Drive Global Gold Prices
The global economy has been grappling with a series of challenges, including geopolitical tensions, inflation concerns, and market volatility. These uncertainties have led investors to turn to gold as a safer investment, thus driving up its prices. In Pakistan, the impact of these global trends is directly reflected in the local bullion markets.
“The rise in gold prices globally is primarily due to investors seeking safe-haven assets amid economic uncertainty and market volatility,” said Ahsan Malik, a financial analyst based in Karachi. “This increase is mirrored in the local markets, where gold prices have also surged significantly.”
Impact on Local Markets
The surge in gold prices has a ripple effect on various sectors of the economy. For jewelers and gold traders, this spike means higher costs and adjustments in pricing strategies. For consumers, particularly those planning weddings or other significant events, the rise translates to increased expenses.
Muhammad Ali, a local jeweler, expressed his concerns about the rising prices, stating, “The continuous increase in gold prices is making it difficult for customers to afford gold jewelry. We are witnessing a shift in consumer behavior, with many opting for lighter pieces or alternative metals.”
Future Outlook
Looking ahead, market experts predict that gold prices may continue to rise if global economic conditions remain unstable. Factors such as central bank policies, inflation rates, and geopolitical developments will play crucial roles in determining the future trajectory of gold prices.
The recent jump in gold prices in Pakistan, driven by global market trends, underscores the interconnectedness of local and international markets. As economic uncertainties persist, gold is likely to remain a preferred investment for many, influencing its prices both globally and domestically.