Karachi: In the global market, gold prices decreased by $14, bringing the rate to $2,661 per ounce. Meanwhile, in the local Sarafa (jewelry) market, the price of gold fell by Rs. 1,400 per tola, now standing at Rs. 277,900 per tola.
Similarly, the price of 10 grams of gold dropped by Rs. 1,201, reaching Rs. 238,254. The price of silver per tola remained stable at Rs. 3,350.
Gold is traditionally considered a safe investment, especially during times of inflation, political, and economic instability, when its value tends to increase.
For centuries, gold has been used as a form of currency and wealth. When investors feel uncertain about other assets, they often turn to gold. In Pakistan, the method of determining gold prices was changed last year. Under the new system, gold prices are set $20 per ounce higher than the international market rate.
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Gold prices attract significant public interest for several reasons:
Investment
Gold is considered an ancient and reliable investment. People monitor gold prices closely when they want to secure their savings or invest for the future.
Inflation Indicator
Gold prices are often seen as a good measure of inflation. As inflation rises, gold prices typically follow suit. People, therefore, see it as a way to gauge inflation trends.
Economic Conditions
Gold prices are a key indicator of global economic conditions. During times of economic uncertainty, people often buy gold, causing its price to rise.
Jewelry
Gold is extensively used in jewelry making. Buyers and sellers of jewelry keep track of gold prices to ensure favorable transactions.
Gold Hoarding
Some individuals hoard gold, viewing it as a valuable asset. This keeps them closely monitoring its prices.
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