Record Highs Push Gold Near Rs. 400,000 Per Tola in Pakistan

Gold prices in Pakistan have soared to record-breaking levels, approaching the Rs. 400,000 per tola mark amid persistent economic uncertainty, global market fluctuations, and a weakening Pakistani rupee.

According to the All Pakistan Gems and Jewellers Association (APGJA), the price of 24-karat gold surged by Rs. 3,500 per tola, reaching Rs. 398,500 in the local bullion market on Monday. Similarly, the price of 10 grams of 24-karat gold rose by Rs. 3,000, settling at Rs. 341,550.

In the international market, gold prices increased by $21 per ounce, reaching $2,495. Analysts attribute this global rally to rising concerns over inflation, slowing global economic growth, and increased demand for safe-haven assets.

Several factors are contributing to the unprecedented spike in gold prices in Pakistan:

• Pakistani Rupee Depreciation: The rupee continues to face pressure against the US dollar, making imports, including gold, more expensive.

• Global Economic Uncertainty: Weak growth forecasts and volatile commodity markets are pushing investors towards gold.

• High Inflation Rates: Domestic inflation has increased consumer interest in gold as a hedge against declining purchasing power.

• Speculative Trading: Increasing speculative investments in gold are further fueling the surge in prices.

Jewellers and gold traders report a noticeable decline in customer buying activity due to soaring prices. Demand for gold jewelry has dropped, while investments in small gold bars and coins are rising as individuals seek safer investment options.

Market experts believe that gold prices could surpass the Rs. 400,000 per tola mark in the coming weeks if the rupee continues to weaken and global uncertainties persist. However, they advise caution for investors, as sudden corrections could occur if international prices stabilize.

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