Investors and consumers in Pakistan witnessed a significant surge in precious metal prices as the local bullion market recorded sharp gains on Friday. The price of gold, a key indicator of economic sentiment and a traditional safe-haven asset, climbed substantially, adding thousands of rupees to its value.
Sharp Rise in Local Gold Prices
According to the latest data released by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of one tola of 24-karat gold increased by a hefty Rs3,000 in a single day. This jump brought the new rate to Rs444,462, up from the previous day's closing of Rs441,462.
For buyers and traders dealing in smaller quantities, the price of ten grams of 24-karat gold rose by Rs2,572, settling at Rs381,054. The rate for the more commonly used 22-karat gold also followed the upward trend. The price for ten grams of 22-karat gold increased by Rs2,358, reaching a new level of Rs349,312.
International Market Trends and Silver Rates
The bullish trend in Pakistan mirrored the movement in the global market. Internationally, the price of gold gained $30 per ounce, settling at $4,221. This international rally is a primary driver behind the local price adjustments, as Pakistan's gold market is heavily influenced by world prices and the dollar exchange rate.
Silver, the other precious metal, also saw its value appreciate. In the domestic market, the price of one tola of 24-karat silver increased by Rs72, reaching Rs6,072. The rate for ten grams of silver went up by Rs61 to Rs5,205. On the international front, silver rose by $0.72 to trade at $58 per ounce.
Market Implications and Outlook
This substantial single-day increase in gold prices has immediate implications for various stakeholders. For investors, it represents a gain in asset value, reinforcing gold's role as a hedge against inflation and currency volatility. For the jewellery industry and consumers, however, it means higher costs for purchases, potentially dampening retail demand during a key season.
Market analysts typically attribute such spikes to a combination of factors, including movements in the international market, fluctuations in the US dollar against the Pakistani rupee, and local demand-supply dynamics. The current global economic uncertainty often pushes investors towards safe-haven assets like gold, creating upward pressure on prices.
Stakeholders are advised to monitor the daily updates from the APSGJA closely, as the market remains sensitive to both global cues and local economic indicators. The continued volatility suggests that consumers looking to make significant purchases should stay informed about the latest gold and silver rates to make timely decisions.
