Gold prices in Pakistan spiked to a record high on Thursday as rates soared to Rs254,400 for a tola, which equals 11. 66 grams, from Rs249,400 the previous day. This, in concordance with the global trends, has pushed gold prices up and has been encouraged by people’s worries all over the world.
The cost for 10 grams of gold within the particular region also followed the same pattern and was recorded at Rs217,764 which increased by Rs4,287. This data was collected from the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA).
This is the fifth time the price has gone up one after the other. Gold rates as early as April 2024 were on the rise and gusting to an all-time high of Rs252,200 per ton.
Conditions that Catalysed the Gold Rush
However, the primary cause that contributes to such an increase in the price of gold in Pakistan is the enhancement of the international gold rate. In the report by APGJSA, it was established that after a $60 increase on Thursday, the international price was $2,470 per ounce inclusive of a $20 premium.
Many people iterate geopolitical risks as a major driver of the continued rise of the international gold price. Gold, thus, serves as the focal point of investment of the additional amount in times of inexplicable volatility.
Impact on the Domestic Market
The gold prices have also gone high; therefore, it has had the following effect on the domestic market. Whereas some investors stand to benefit from the enhanced value of their gold investment, the end consumers, those who use physical gold for weddings, gifts, etc., might stay away due to the high prices.
The Road Ahead
Thus, there is no certain future trend as to the gold prices in Pakistan. It may be expected that the global political climate and international gold rates will remain to be highly impactful. Is this the new normal where prices stabilize and maintain at the record high they have hit at the moment or do we look forward to prices coming down in the next few days.