Gold price increases by Rs700 to Rs241,000 per tola

The price of gold in Pakistan saw a notable increase on Tuesday, with 24-karat gold reaching Rs241,000 per tola, marking a Rs700 rise from the previous session.

This hike comes despite efforts to maintain prices below their actual value to accommodate the reduced purchasing power among consumers. Currently, gold prices are set Rs3,000 lower than their market cost.

In a broader context, last week witnessed a mild recovery in Pakistan’s bullion market. The price of 24-karat gold edged up by Rs300, settling at Rs240,300 per tola.

The Karachi Sarafa Association reported an additional increase this week, with 24-karat gold rising by Rs600 to Rs206,619 per 10 grammes. In comparison, 22-karat gold was priced at Rs189,400 per 10 grammes.

Silver prices remained stable, with 24-karat silver selling for Rs2,900 per tola and Rs2,486.28 per 10 grammes.

On the international stage, spot gold traded near $2,331.69 an ounce, experiencing a decline of 0.81 per cent from the previous close. The global gold market is currently influenced by uncertainties surrounding potential interest rate cuts by the Federal Reserve.

This ambiguity has caused confusion among market participants regarding the future trend of inflation, contributing to the recent depreciation in gold prices.

The fluctuating gold prices in Pakistan reflect a combination of local economic conditions and international market trends, illustrating the intricate balance between domestic fiscal strategies and global economic influences.