Gold prices in Pakistan experienced a significant rise on Friday, aligning with the increasing international rates. This marked a notable rebound after the previous session's decline, solidifying gold's position as a valuable investment and a sought-after commodity.
Gold Prices Per Tola
In the local market, the price of gold per tola increased by a substantial Rs2,900, reaching a record high of Rs289,600.
Similarly, the price of 10-gram gold rose by Rs2,486, bringing it to Rs248,285, as reported by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA).
This increase follows a slight dip on Thursday when gold prices dropped by Rs750, settling at Rs286,700 per tola.
However, Friday's uptick showcases the resilience of gold prices amidst fluctuating market conditions.
The international rate of gold also saw a remarkable surge on Friday. According to APGJSA, the global gold rate stood at $2,772 per ounce, reflecting a $29 increase during the day.
This international hike directly influenced the local market, driving prices to record-breaking levels in Pakistan.
The global bullion market often sets the tone for local gold prices, as international trends significantly impact domestic rates.
The premium of $20 per ounce further underscores the high demand for gold in uncertain economic conditions.
Silver Prices
In addition to gold, silver prices also experienced a notable rise. The price of silver per tola increased by Rs31, reaching Rs3,432.
This upward trajectory highlights the consistent demand for precious metals in both local and global markets.
Silver, often considered a more affordable alternative to gold, continues to attract investors looking for safe-haven assets during economic uncertainty.
Gold prices in Pakistan have witnessed significant fluctuations over the past year. In October 2022, gold reached a then-record high of Rs287,900 per tola, reflecting the volatile nature of the market.
However, Friday's surge to Rs289,600 surpasses previous records, marking a new milestone in the local bullion market.
Factors Driving Gold Prices Higher
Several factors contribute to the rising gold prices in Pakistan and around the world:
- Global Economic Uncertainty
Political and economic uncertainties, including geopolitical tensions and concerns about inflation, drive investors toward safe-haven assets like gold. - Fluctuations in the US Dollar
A weaker US dollar often boosts gold prices, as it makes the metal more affordable for holders of other currencies. On Friday, global gold prices soared as uncertainty surrounding trade policies impacted the dollar's strength. - Demand-Supply Dynamics
The demand for gold, both for investment and industrial use, plays a significant role in its pricing. Limited supply further exacerbates price increases during periods of high demand. - International Gold Market Trends
Pakistan's gold market closely follows global trends, with changes in international prices directly impacting domestic rates.
Gold's appeal as a safe-haven investment remains strong amid economic turbulence. Investors often turn to gold during times of uncertainty to protect their wealth from inflation and currency depreciation.
