Karachi: Gold prices skyrocketed on Wednesday, reaching a new all-time high in both local and international markets. Investors and traders witnessed a significant spike amid global economic uncertainty and rising demand for safe-haven assets.
In the local bullion market, the price of gold per tola surged by Rs8,600, hitting Rs348,000. This marks the highest-ever recorded price for gold in Pakistan’s market history.
Similarly, the rate of 10 grams of gold rose by Rs7,373, now standing at Rs298,353. The steep increase shocked both jewellers and buyers, who were already bracing for market volatility.
Gold prices also surged globally. In the international market, the price of gold jumped by $86 per ounce, reaching $3,310. This is one of the highest peaks in recent years, fueled by market concerns and growing inflation.
Market Experts Weigh In
Gold dealers in Karachi say the surge is due to a combination of depreciation of the Pakistani rupee, rising global inflation, and geopolitical tensions. They believe that more investors are turning to gold as a secure investment during uncertain times.
According to traders, the lack of trust in fiat currencies and fears of recession have boosted the appeal of precious metals. “Whenever there’s fear in the market, gold becomes the ultimate shelter,” said one trader.
Demand Continues to Rise
Despite high prices, demand for gold remains strong in both the domestic and international markets. Many investors are shifting funds from stocks and currencies to gold, seeing it as a stable option in a volatile economy.
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The surge also comes ahead of the wedding season in Pakistan, a period when gold jewellery purchases traditionally increase. Jewellers anticipate that prices may continue to rise if the trend in global markets persists.
Global Factors Behind the Surge
In the global market, central banks are buying gold aggressively. Countries like China and Russia have increased their reserves, adding to upward pressure on prices. Analysts say concerns over possible interest rate cuts in the U.S. have also contributed to the bullish trend.
Additionally, ongoing conflicts and economic sanctions across regions are pushing investors to diversify their portfolios. Gold, historically known for preserving wealth, has once again taken the spotlight.
What’s Next for Gold?
Market analysts predict further hikes if inflation continues and global tensions remain unresolved. Some even suggest that gold could cross $3,400 per ounce in the coming weeks if current trends persist.
Local traders recommend caution for buyers and suggest monitoring both currency and gold trends closely. “If you’re planning to buy gold, do it wisely. Prices could rise further,” advised a Karachi-based jeweller.
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