Gold prices in Pakistan continued to break records on Wednesday. According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of gold per tola surged by Rs2,500, bringing the new rate to an all-time high of Rs275,500.
Steady Climb in Prices
Similarly, the price of 10-gram gold also increased. It rose by Rs2,144, with the new price standing at Rs236,197. This sharp rise followed Tuesday’s increase, where the price of gold jumped by Rs1,100 per tola after briefly declining by Rs600 per tola earlier in the day. Tuesday’s spike pushed the price to Rs273,000 per tola.
International Gold Rates Remain Stable
Meanwhile, the international gold market remained steady. Spot gold hovered at $2,658.08 per ounce. US gold futures also saw a slight uptick, rising 0.2 percent to reach $2,682.10 per ounce.
The APGJSA reported that the international rate for gold was set at $2,653 per ounce, including a $20 premium. This marked a $25 increase during the day, contributing to the rising trend in local markets.
Why Prices Are Rising
The soaring gold prices in Pakistan are closely tied to trends in the international market. Global uncertainties, inflation concerns, and rising demand for gold as a safe investment option are contributing factors. In Pakistan, the depreciation of the local currency against the US dollar further fuels the increase in gold prices. Gold is traditionally seen as a hedge against currency devaluation, making it a popular investment choice during times of economic instability.
Impact on Local Market
The record-breaking rise in gold prices is having a mixed effect on the local market. Jewelers are witnessing fewer buyers as many find it challenging to afford gold at such high rates. Wedding season demand, which usually boosts gold sales, has also slowed down due to the rising costs.
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However, for those holding gold as an investment, the price surge brings significant gains. Investors who purchased gold at lower rates are now benefitting from the escalating prices. This has led to a growing interest in gold as an investment vehicle, particularly amid the current economic uncertainty.
Experts predict that gold prices may continue to rise in the coming days if international trends persist. The combination of global market dynamics, local currency depreciation, and inflationary pressures points toward a sustained upward trajectory. However, any major shift in international gold prices or changes in Pakistan’s economic conditions could impact this trend.
The gold market in Pakistan remains highly volatile, with prices hitting record highs almost daily. As long as global and local factors continue to drive demand and inflation fears persist, gold prices are likely to stay elevated. For now, the market is keeping a close eye on international trends and the local economic situation.
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