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Tuesday May 21, 2024

Gold prices hit all-time high

By Our Correspondent
April 18, 2024
Gold bars can be seen in this image. — AFP/File
Gold bars can be seen in this image. — AFP/File

KARACHI: Gold prices in Pakistan hit an all-time high on Wednesday, with a surge of Rs2,200 per tola in the local market, reflecting a similar trend in the international market.

According to All Sindh Saraf Jewellers Association data, gold rates soared to an unprecedented Rs251,900 per tola. Similarly, the price of 10-gram gold witnessed a substantial increase of Rs1,887, reaching Rs215,964.

In the international market, gold rates surged by $21 to $2,412 per ounce, marking a new peak in the global market.Silver rates increased by Rs130 to Rs2,780 per tola. Similarly, 10-gram silver rates also rose by Rs111.46 to Rs2,383.40.

Notably, prices in the local market are adjusted with a premium of $20 against rates in the international market.

The surge in local gold prices can be attributed to a notable upswing in the international market, where prices have also soared to unprecedented levels. With mounting geopolitical tensions in Europe and the Middle East, investors increasingly turn to gold as a reliable safe-haven asset.

The recent escalation in tensions between Iran and Israel has further heightened uncertainty in international markets, prompting investors to flock to gold, which is widely regarded as a secure investment during times of turmoil.

Local jewellers have observed a decline in jewellery sales within the country, driven by the surge in gold prices. Instead, there is a growing demand for raw gold or gold bars, particularly among investors seeking to hedge against economic uncertainty. However, affluent individuals and overseas Pakistanis continue to show interest in purchasing jewellery despite the prevailing market conditions.

According to analysts, the depreciation of major currencies against the US dollar has also played a role in driving up gold prices. Investors see gold as a reliable hedge against currency devaluation, further boosting demand for the precious metal.