Gold prices have reached historic highs, both in Pakistan and globally, reflecting economic uncertainty and increased demand for safe-haven assets.
On Wednesday, March 20, 2024, the price of gold per tola in Pakistan surged to Rs. 319,000, setting a new all-time high.
This comes after a sharp increase of Rs. 1,650 in a single day, continuing the upward trend from the previous session.
The international gold market also witnessed a significant jump, with prices rising by $16 per ounce, bringing the global rate to $3,038 per ounce (including a $20 premium), according to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA).
Gold Price Hike in Pakistan – A Closer Look
The gold price in Pakistan has been on a sharp upward trend due to several contributing factors:
- On March 19, 2024, gold per tola was priced at Rs. 317,350, but it has now jumped by Rs. 1,650 to reach Rs. 319,000.
- The price of 10-gram gold also saw a substantial rise, increasing by Rs. 1,415 to Rs. 273,491.
| Date | Price per Tola (Rs.) | 10-gram Price (Rs.) |
|---|---|---|
| March 20, 2024 | 319,000 | 273,491 |
| March 19, 2024 | 317,350 | 272,076 |
| March 18, 2024 | 314,800 | 270,661 |
Why is Gold Becoming More Expensive in Pakistan?
Several macroeconomic and global factors have contributed to this unprecedented surge in gold prices.
- Geopolitical tensions, including conflicts in Eastern Europe and the Middle East, which drive investors toward gold as a safe-haven asset.
- US Federal Reserve policies, which indicate a more cautious approach to interest rate cuts, affecting gold prices.
- Increased demand from central banks, particularly in China, India, and Russia, where gold reserves are being expanded.
Global Gold Market Trends
Gold prices have been climbing steadily worldwide, crossing $3,038 per ounce.
- Depreciation of the Pakistani Rupee (PKR): A weaker PKR against the US dollar makes imported gold more expensive.
- Declining Foreign Reserves: The country’s struggle to maintain adequate foreign exchange reserves has impacted currency stability.
With global stock markets showing signs of instability, investors are shifting their capital to gold, a historically reliable store of value.
Experts suggest that gold prices could touch $3,200 per ounce in the coming months.Pakistani markets may see gold per tola surpass Rs. 325,000 if international trends continue.
The increase in gold prices has several implications for Pakistan’s economy and consumers.Higher gold prices contribute to inflation, affecting purchasing power and overall economic stability.
