Pakistan’s domestic bullion market (GOLD) experienced a notable surge on Tuesday, with the price of 24-karat gold climbing by Rs700 per tola, reaching a remarkable Rs216,100. This increase reflects the broader trends in the international gold market and the country’s economic trends.
DETAILING THE SURGE
The Karachi Sarafa Association, a key player in the local bullion market, reported that the price for 10-gram 24-karat gold ascended to Rs185,271, marking a Rs600 increase from the day before. Additionally, the price for 10-gram 22-karat gold also surged, reaching Rs169,832.
STABILITY IN SILVER PRICES
In contrast to gold’s upward trajectory, silver prices in the domestic market remained steady. The rate for 24-karat silver remained steady at Rs2,600 per tola and Rs2,229.08 per 10-gram.
GLOBAL INFLUENCES ON LOCAL GOLD PRICES
This recent surge in domestic gold prices is closely tied to shifts in the international market. The international spot gold price stands at $2,038.84 [as of 1:47pm PST], experiencing a 0.28% increase from the previous session’s closing. This uptrend in global prices is a primary driver for the surge in gold prices in Pakistan.
CONTEXTUALISING THE GLOBAL GOLD MARKET
It’s noteworthy that the international gold market observed its second consecutive weekly loss last week, mainly due to diminishing expectations of a rate cut.
Although, the landscape shifted with escalating tensions in the Middle East, heightening the allure of gold as a safe-haven asset. This shift is now visibly influencing the bullish trend in the gold market.
LOCAL FACTORS AT PLAY
Despite the continuous strengthening of the Pakistani Rupee (PKR), which exerted pressure on domestic gold prices, the market has responded more significantly to the uptick in international gold prices. This balance between local currency dynamics and global market trends underscores the complex interplay influencing Pakistan’s bullion market.
