Gold price surges to record high of Rs254,000 per tola in Pakistan

The price of gold in Pakistan soared to a new record on Thursday, with 24-karat gold increasing by Rs4,600 per tola, reaching an unprecedented Rs254,000. This surge aligns with global market trends influenced by economic indicators in the United States.

The rise in gold prices is driven by signs of slowing inflation in the US, prompting speculation that the Federal Reserve may soon lower interest rates. Historically, high interest rates tend to negatively impact gold prices as the precious metal does not yield interest, making it less attractive to investors compared to interest-bearing assets.

Notably, the current gold price in Pakistan is Rs4,000 below its actual market value due to a decrease in purchasing power, reflecting broader economic challenges.

According to the Karachi Sarafa Association, the price of 24-karat gold per 10 grammes has risen by Rs3,944, now standing at Rs217,764 per tola. Similarly, 22-karat gold is now priced at Rs199,617 per 10 grammes.

Meanwhile, silver prices have remained stable in the domestic market. The price of 24-karat silver is Rs2,900 per tola and Rs2,486 per 10 grammes.

Globally, spot gold is trading near $2,468 an ounce, having surpassed the previous all-time high set in May. This global uptrend in gold prices is reflected in the domestic market, influencing local prices accordingly.

The significant rise in gold prices highlights the ongoing economic uncertainties and the impact of international financial trends on the local market. As investors navigate these fluctuations, the gold market continues to be a barometer of economic sentiment.