Gold Rates Soar in Pakistan Amid US Credit Downgrade
The surge in gold prices is expected to continue, driven by the weaker US dollar and increased safe-haven demand, making gold a more attractive investment option for those seeking to diversify their portfolios and mitigate potential losses.
Gold prices in Pakistan have surged to Rs342,500 per tola, with 10-gram gold prices rising to Rs293,638, driven by a weaker US dollar and renewed safe-haven demand following the US credit rating downgrade to "Aa1" from "AAA" by Moody's.
The US credit rating downgrade has led to a decrease in investor confidence, causing them to seek safer investments such as gold. As a result, spot gold rose 1% to $3,234.70 an ounce, with the US dollar index hitting its lowest level since May 8. The Pakistani rupee also depreciated 0.04% to 281.77 against the US dollar, further contributing to the increase in gold prices.
In the local market, gold prices rose sharply on Tuesday, with the price of gold per tola reaching Rs342,800 after gaining Rs300. The international rate of gold also increased, reaching $3,244 per ounce with a premium of $20. The price of 10-gram gold was sold at Rs293,895, a gain of Rs257. Meanwhile, silver prices remained stable at Rs3,410 per tola.
The All-Pakistan Gems and Jewellers Sarafa Association (APGJSA) has quoted the gold rates in Pakistan on 20th May 2025, providing investors with the latest prices. As the global economic situation continues to evolve, investors will be closely watching the gold rates and their impact on the market.