PTBP Web Desk
gold prices in Pakistan saw a significant increment on Friday, aligning with the global trend of rising precious metal values.
The All-Pakistan Gems and Jewelers Sarafa Association (APGJSA) reported that the price of gold per tola increased by Rs2,500, reaching a new peak at Rs280,500.
For those dealing in smaller quantities, the price of 10-gram gold also saw an uptick, with an increase of Rs2,143, now trading at Rs240,483. This surge in local prices follows a pattern where on the previous day, Thursday, gold had already advanced by Rs3,700 per tola, settling at Rs278,000.
Globally, gold was experiencing a strong week, with prices set for their best performance in a year. This international momentum was largely fueled by safe-haven demand due to escalating tensions in the Russia-Ukraine conflict. Investors are increasingly turning to gold as a refuge against geopolitical risks and potential economic downturns.
The international rate for gold escalated to $2,693 per ounce, up by $25 from the previous trading session. Including a premium of $20, the effective rate felt by local markets was even higher, explaining the substantial local price adjustments.
In contrast to the gold market’s volatility, silver prices in Pakistan held steady at Rs3,450 per tola, indicating that while investors are keen on gold, there might be a different sentiment or perhaps a saturation in silver demand at the current levels.
The ongoing war has significantly influenced the gold market. As tensions rise, investors often move their investments into assets perceived as safer, with gold being a traditional choice during times of uncertainty.
There’s also anticipation around potential US interest rate adjustments. Lower interest rates typically reduce the opportunity cost of holding non-yielding assets like gold, thereby increasing its attractiveness to investors.
Just last month, gold prices in Pakistan had reached an all-time high of Rs287,900 per tola, showcasing the metal’s robust demand domestically. While not quite reaching that peak again, the current prices are still indicative of strong investor interest.
The local market’s response to international trends is often immediate, as seen with the day’s price adjustments. This sensitivity to global markets reflects Pakistan’s integration into the global economy, where local prices often mirror international movements.
Gold continues to be a favored investment in Pakistan, not just as a hedge against inflation but also as a culturally significant asset for personal and familial wealth preservation. Its liquidity and the universal acceptance of its value make it a go-to asset during times of economic uncertainty.
Given the current geopolitical climate and economic forecasts, analysts predict that gold might continue its upward trend, though investors should watch for any signs of de-escalation in conflicts or shifts in monetary policy that could alter this trajectory.
The dynamics of gold buying in Pakistan are also influenced by local factors like wedding seasons, traditional investments in jewelry, and speculative trading based on market trends.
