Gold prices rise by Rs700 per tola to record high

KARACHI: Gold prices increased by Rs700 per tola on Tuesday, reaching a new record high in the local market as international gold prices continue their upward trajectory.

According to the All Sindh Saraf Jewellers Association, gold rates have now reached Rs260,700 per tola, marking another all-time high in both local and international markets. Similarly, the price of 10-gram gold rose by Rs600, bringing it to Rs223,508.

In the international market, gold prices increased by $10, bringing the price per ounce to $2,512. Despite the continued rise in gold prices, silver rates remained unchanged at Rs2,950 per tola, with 10-gram silver prices holding steady at Rs2,529.14. Local prices are adjusted by a premium of $20 compared to international rates.

Senior goldsmith Muhammad Shafi Khan explained that the recent increase in local gold prices directly follows the rise in international prices. “Prices in the international market are rising rapidly due to ongoing conflicts in Europe and the Middle East, as well as economic crises in several countries,” Khan said. He emphasized that gold continues to be seen as a safe haven by investors during these uncertain times.

Despite the significant rise in gold prices, local demand remains subdued due to the weak purchasing power of consumers in Pakistan. Khan noted that gold prices in the local market have been lowered by around Rs4,000 per tola compared to international rates to account for this reduced demand. “People here are struggling financially, and many are unable to afford gold at these prices,” he added.

Khan also highlighted a growing trend of people selling their gold to meet other essential expenses, such as paying electricity bills. “Economic pressure on people is leading many to liquidate their gold assets to fulfil basic needs,” he observed.

The rise in gold prices reflects broader global economic uncertainty and geopolitical tensions, particularly in Europe and the Middle East. As investors seek stability amidst these turbulent conditions, gold’s appeal as a secure investment continues to grow. However, in Pakistan, economic challenges faced by people have tempered demand, leading to a discrepancy between local and international prices.

As the global situation remains volatile, analysts suggest that gold prices are likely to continue their upward trend. The ongoing demand for gold as a safe-haven asset is expected to sustain this trajectory, even as local markets grapple with the challenges of reduced purchasing power.Khan said the gold rates could stabilize once the geo-political and economic situation around the world returns to normalcy.