Gold Prices in Pakistan Hit Record High
Gold prices in Pakistan have reached a record high due to global economic uncertainty, with the price per tola increasing by Rs400 to Rs292,200. The international price of gold is predicted to surpass $3,000 by 2025, making it a challenging time for local consumers to afford the precious metal.
The price of gold in Pakistan has soared to a record high of Rs292,200 per tola, marking a significant increase of Rs400 from the previous day, amid global economic uncertainty and growing demand for the precious metal as a safe-haven asset.
The global economic uncertainty, fueled by the actions of the newly elected US president, including increasing import duties on products from China, the European Union, and Mexico, has led to concerns of a global trade war. This has resulted in increased global investors turning to gold as a safe-haven asset, causing its price to reach historic highs. The international price of gold per ounce is predicted to surpass $3,000 by 2025.
In Pakistan, gold prices edged higher to new highs, reaching Rs292,200 per tola and Rs250,514 per 10 grams, respectively. The rise is attributed to growing global demand and geopolitical tensions, leading to a hike in the US dollar's value in the international market. Local investors have been buying gold as a safe-haven investment, while a decline in interest rates pushed them towards the metal due to low returns on certificates and bank deposits.
The unaffordability of gold has resulted in decreased sales at local jewelry shops and a reduction in the purchasing power of the lower and middle classes. The average consumer is now only able to afford a half tola of gold jewelry, down from two or four tolas that they could previously afford. Silver prices, however, dropped by Rs30 and Rs26 to Rs3,270 per tola and Rs2,803 per 10 grams, respectively, amidst decreased international rates.
The increasing gold prices in Pakistan have significant implications for the local economy and consumers, who are finding it challenging to afford the precious metal. As the global economic uncertainty continues to fuel the demand for gold, it is likely that the prices will continue to rise, affecting the purchasing power of the average consumer.