Zina Kumok
Updated on: October 15, 2024 10:32 am GMT
In a startling turn of events, gold prices in Pakistan have surged to unprecedented heights, reflecting growing economic uncertainty and shifts in investment preferences among the populace. As of September 28, 2024, the price of 24K gold has reached Rs 280,000 per tola, prompting many to rethink their financial strategies in an unstable economic environment.
The Current Landscape of Gold Prices
The All-Pakistan Gems and Jewellers Sarafa Association (APGJSA) reports that gold prices have climbed sharply across various categories, influenced by global market trends and local economic factors. Here are the latest prices:
- 24K Gold:
- Price per Tola: Rs 280,000
- Price per 10 Grams: Rs 240,060
- Price per Gram: Rs 24,006
- Price per Ounce: Rs 680,400
- 22K Gold:
- Price per Tola: Rs 256,666
- Price per 10 Grams: Rs 220,055
- Price per Gram: Rs 22,005.5
- Price per Ounce: Rs 623,700
- 21K Gold:
- Price per Tola: Rs 245,000
- Price per 10 Grams: Rs 210,052.5
- Price per Gram: Rs 21,005.25
- Price per Ounce: Rs 595,350
- 18K Gold:
- Price per Tola: Rs 210,000
- Price per 10 Grams: Rs 180,045
- Price per Gram: Rs 18,004.5
- Price per Ounce: Rs 510,300
The significant increase in these prices showcases a broader trend where gold is becoming a preferred investment amid fears surrounding economic instability.
Drivers Behind the Surge
Several factors contribute to the current surge in gold prices within Pakistan’s market.
Local Economic Concerns
The ongoing economic challenges, marked by inflation and currency depreciation, have led many investors to seek safety in gold. Local jewelers have reported a dramatic decline in foot traffic, with only 30-35 percent of typical consumer visits noted.
Mohammad Haseen Qureishi, chairman of the All Karachi Jewellers and Manufacturers Association, indicated that the soaring prices are driving customers to opt for smaller purchases, with many opting for gold items weighing two to three tolas instead of traditional ten-tola sets.
Global Market Influence
As noted by Haroon Rasheed Chand, the chairman of APGJA, international dynamics play a crucial role. Recently, gold prices in the global market surged by $25 per ounce, reaching $2,653. This global increase often trickles down to affect local prices, reflecting how interconnected today’s economies are.
Samiullah Tariq, from Pak Kuwait Investment Company Ltd, added that, due to the uncertain economic outlook, more Pakistanis are investing their savings in gold rather than in real estate or foreign currencies like the US dollar.
How This Affects Consumers
The rising gold prices are reshaping the consumer landscape in Pakistan. Many individuals are reassessing how they invest and spend, particularly during this period of financial ambiguity.
- Increased Preference for Smaller Gold Purchases: As indicated, consumers are increasingly opting for smaller gold items.
- Shift in Investment Strategy: Many are prioritizing gold investments over traditional assets.
- Concerns Over Buying Power: The diminishing purchasing power is leading to a more cautious consumer base.
These trends suggest a substantial shift in both consumer behavior and investment strategies in Pakistan’s economy.
Future Outlook
Moving forward, the outlook for gold prices in Pakistan seems likely to remain volatile. As local and global economic conditions evolve, many experts believe that gold may continue to experience fluctuations in price. The current geopolitical tensions and economic crises in various countries add to this uncertainty.
Consumers and investors alike should stay informed about the economic indicators that may impact gold prices.
the recent surge in gold prices in Pakistan reflects a complex interplay of local economic uncertainty and global market forces. While this trend poses challenges for consumers, it also highlights the enduring appeal of gold as a stable investment during turbulent times. As the situation continues to develop, careful monitoring of price trends and market conditions will be essential for informed decision-making in the gold market.
If you want to learn more about what’s happening in the gold market, there are many resources available to help you stay updated.
