Gold prices soar to record high, hit Rs257,300/tola

KARACHI: The price of gold skyrocketed to unprecedented levels on Friday, as the precious metal continued its upward trajectory.The local market witnessed a sharp increase of Rs2,400 per tola, pushing the price to a record high of Rs257,300. Consequently, the price of 10-gram gold also surged by Rs2,057, settling at Rs220,593.

The All-Pakistan Gems and Jewellers Sarafa Association (APGJSA) attributed the dramatic price hike to the ongoing strength of the international gold market.Global gold prices climbed by $26 per ounce to reach $2,458, a significant increase that directly impacted domestic rates. Silver rates remain unchanged at Rs2,900 per tola. This surge in gold prices is likely to have far-reaching implications for the local economy. The jewellery industry, a major consumer of gold, is expected to face challenges as consumers may curtail spending on gold ornaments due to the elevated prices, experts said.

Moreover, the increase could potentially divert investment towards gold as a safe-haven asset, impacting other investment avenues. Analysts predict that the upward trend in gold prices may persist in the near term, driven by factors such as geopolitical tensions, inflation concerns, and a weakening US dollar. However, they also caution that the market is highly volatile and prices could fluctuate rapidly.

Gold prices in Pakistan are on the upward trajectory. On Thursday, the price per tola had climbed by Rs1,400 to settle at Rs254,900, while the rate for 10 grams increased by Rs857 to Rs218,536.Experts attribute this rapid escalation in gold prices to the prevailing economic climate. As investors seek safe-haven assets amid market uncertainties, gold emerged as a preferred choice. This trend has been reflected in the global market as well, where gold prices have shown consistent growth.