Gold prices in Pakistan have skyrocketed to new all-time highs as international bullion markets continue their upward trend. On Monday, the price of gold per tola surged by Rs1,500, reaching an unprecedented Rs309,500, while the price per 10 grams climbed by Rs1,286 to settle at Rs265,346. This historic rise follows a sharp increase in global gold prices, which reached $2,950 per ounce, according to the All Pakistan Sarafa Gems and Jewelers Association.
Global Gold Market Hits New Peaks
The international gold market saw a notable jump of $15 per ounce, pushing gold rates to $2,948 per ounce. Analysts suggest that the rising demand for gold is driven by factors such as global economic uncertainty, inflation concerns, and geopolitical tensions. As a result, investors are increasingly turning to gold as a safe-haven asset, boosting its value worldwide.
Silver Prices Also on the Rise
Alongside gold, silver prices also witnessed a surge in both local and international markets. The price of silver per tola increased by Rs15 to reach Rs3,395, while the rate per 10 grams rose by Rs12, settling at Rs2,910. Globally, silver was trading at $33 per ounce, reflecting growing investor interest in precious metals amid market volatility.
What’s Driving the Surge in Gold Prices?
Several key factors have contributed to the record-breaking gold prices in Pakistan and internationally:
Economic Uncertainty: Investors are moving towards gold as a hedge against inflation and potential economic slowdowns.
Central Bank Policies: Central banks worldwide, including those in China, India, and Russia, have been increasing their gold reserves, pushing demand higher.
Weaker US Dollar: A declining US dollar often leads to higher gold prices as it becomes cheaper for foreign investors.
Geopolitical Tensions: Ongoing global conflicts and trade tensions have heightened the appeal of gold as a safe-haven investment.
Interest Rate Policies: With central banks considering rate cuts to stimulate economies, lower interest rates make gold more attractive compared to interest-bearing assets.
Impact on Pakistan’s Gold Market
Pakistan’s gold market closely follows international trends, but local factors also play a role in price fluctuations. The rising dollar rate, inflation, and supply chain disruptions have further fueled price hikes. Additionally, wedding season demand and investment in gold jewelry contribute to higher prices.
Gold and silver may trade at varying prices in the open market compared to those set by the All Pakistan Sarafa Gems and Jewelers Association, as local supply and demand factors influence rates.
What’s Next for Gold Prices?
Market experts predict that gold prices could continue their upward trajectory if global inflation persists and geopolitical risks remain high. However, any signs of economic stability or aggressive interest rate hikes by major central banks could put downward pressure on gold prices.
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