- Gold prices in Pakistan surged after a brief stagnation, driven by international market trends.
- In the global market, gold prices rose by $54 per ounce to $2,366, following a previous record high on April 12.
- Silver prices in the local market remained unchanged at Rs2,620 per tola and Rs2,246.22 per 10 grams.
Following a brief pause in the previous session, the price of gold in Pakistan experienced significant gains on Friday, propelled by an upswing observed in the international market for the precious metal.
According to data provided by the All Pakistan Sarafa Gems and Jewellers Association, the price of gold in Pakistan surged by Rs4,600 per tola and Rs3,944 per 10 grams, settling at Rs243,800 and Rs209,019, respectively.
Last week, both local and international gold prices had been on a downward trajectory as investors sought refuge in gold amidst escalating geopolitical tensions. However, recent negative cues snapped this winning streak, resulting in losses for the market.
Despite recent fluctuations, the gold price in Pakistan has experienced a notable decline since reaching an all-time high of Rs252,200 per tola on April 20, 2024, shedding Rs6,400 per tola over the past week.
Interestingly, the association noted that the current gold price in Pakistan is Rs3,000 per tola lower than the international market, indicating that the local market offers a more favorable rate for buyers.
Gold, often considered a hedge against inflation, faced losses in the local market following stronger-than-expected inflation data, which reduced expectations of a rate cut. Additionally, a stable monetary policy dampened investor sentiment.
Similarly, in the international market, the price of gold rose by $54 per ounce, settling at $2,366, following a record high of $2,431.29 on April 12.
Meanwhile, the price of silver in the local market remained unchanged at Rs2,620 per tola and Rs2,246.22 per 10 grams, respectively.
The determination of gold prices in Pakistan is influenced by various factors, including global market prices, the rupee-dollar exchange rate, and domestic demand and supply dynamics. The announcement of gold prices by the association reflects the rates at which transactions occur between buyers and sellers in local markets.
Despite its relatively small market size globally, Pakistan relies on imports to meet the demand for gold, as it does not produce the precious metal domestically.
In conclusion, the recent volatility in gold prices in Pakistan underscores the ongoing political and economic uncertainties, prompting individuals to view gold as a safe investment and hedge during such times of turmoil.