Gold price in Pakistan rises by Rs2,100 per tola.
Surging Gold Prices in Pakistan's Local Market
Gold prices in Pakistan saw a spike on Tuesday, mirroring the rise in the international gold market. The latest gold price per tola in the local market stood at a staggering Rs349,200 after a single-day gain of Rs2,100.
The All-Pakistan Gems and Jewellers Sarafa Association (APGJSA) announced that 10-gram gold was sold at Rs299,382 after an increase of Rs1,800.
The international price of gold also climbed on Tuesday, according to APGJSA, with the rate at $3,310 per ounce (with a premium of $20), a jump of $21 during the day.
Contrarily, gold price per tola had dipped by Rs1,600 on Monday, settling at Rs347,100.
The price per tola of silver remained stable in Pakistan at Rs3,497 per tola.
The gold market has faced intense volatility in recent months, with geopolitical tensions, investor sentiment shifts, and central bank purchases fueling the surge. Prices have soared to record heights, with reports indicating they have breached $3,500 per ounce, marking a 31% increase since the start of the year. This impressive climb underscores gold's role as a safe-haven asset in times of global economic turmoil.
International trends have a substantial impact on local gold prices in Pakistan, as the country imports gold, causing fluctuations in international gold prices to resonate in local markets. Additionally, the value of the Pakistani rupee (PKR) against major currencies like the U.S. dollar (USD) influences the affordability of gold for locals. A weaker PKR can contribute to higher gold prices domestically.
Local factors, such as demand for jewelry and investment, as well as government policies on gold imports and taxes, also play essential roles in shaping the local gold market in Pakistan.
- Increased demand from local jewellers could potentially mirror the surging global gold prices, placing additional pressure on the gold industry in Pakistan.
- As gold prices in Pakistan continue to rise, investors might consider other precious metals like silver to diversify their portfolios, given the steady price of silver per tola in the local market.
- Gold Finance Limited, a Pakistani financial institution catering to the gold sector, may witness growing demand for its services due to the high prices, given the increasing appeal of gold as a safe-haven asset.
- The All-Pakistan Gems and Jewellers Sarafa Association (APGJSA) must keep a close eye on the international gold market if they hope to accurately predict price trends within Pakistan's local market.
- With gold prices climbing aggressively, the Pakistani government may reconsider its policies on gold imports and taxes to mitigate any potential economic strain on consumers and maintain overall market stability in the local gold industry.
