- Gold price in Pakistan defy international trends and continue to surge, gaining Rs1,800 per tola and Rs1,542 per 10 grams.
- The price of silver experiences a minor decline in contrast to rising gold rates.
- Economic uncertainty and high inflation drive the popularity of gold as a safe investment and hedge in Pakistan.
Gold Price in Pakistan Surge Despite International Rate Decrease
Gold prices in Pakistan continue to rise, defying the downward trend in international rates. According to the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of 24-carat gold increased by Rs1,800 per tola, reaching Rs222,900, and Rs1,542 per 10 grams, settling at Rs191,100.
Local Gold vs. Dubai Bullion Market
Interestingly, despite the surge in local gold prices, the Dubai bullion market is offering gold at a lower rate, with a difference of Rs4,000 per tola.
Silver Prices Follow Suit
Silver prices, however, experienced a minor dip, with a decrease of Rs150 per tola, amounting to Rs2,650, and Rs128.6 per 10 grams, settling at Rs2,357.68.
Global Gold Price Decline
Meanwhile, in the international market, the price of gold faced a $12 decline, settling at $1,966. This drop comes amid prevailing political and economic uncertainty, coupled with high inflation rates.
Reasons for Gold’s Popularity
The volatile economic climate and uncertain political situation in Pakistan have motivated people to invest in gold as a safe haven, using it as a hedge against financial instability.
Recent Price Fluctuations
Over the past few days, gold rates have seen considerable fluctuations. Prior to Muharram, the rates surged by Rs13,200 per tola in the last three sessions (Monday, Tuesday, and Wednesday). However, just a day before, prices dropped significantly by Rs5,300 per tola and Rs4,544 per 10 grams.
Decline of the Local Currency
In addition to gold prices, the local currency also experienced a decline of 0.58% against the US dollar in the interbank market, reaching Rs286.81.
Published in PakWeb, July 21, 2023.
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