Gold prices see rise in Pakistan
According to the All Pakistan Gems and Jewellers Sarafa Association(APGJSA), the price of 24-krat gold was up by Rs2,500 to reach Rs245,000 in the domestic market.
Similarly, the 10 grams of gold stood at Rs206,190 following a rise of Rs2,143.
On Monday, gold prices rose internationally to $2,322 per ounce, gaining $21. In Pakistan, however, gold prices fell by Rs1,600 to Rs238,000 per tola on May 4.
Simultaneously, the Pakistan Stock Exchange (PSX) had a strong start with the KSE-100 index surging by 700 points, reaching 72,600 points. This signals investors’ confidence in Pakistan’s economy. When investors feel positive, they buy stocks, driving prices up. This boosts economic growth as investors spend and take risks. Conversely, if they’re uncertain, they might sell, causing prices to drop.
These fluctuations in gold and stock prices reflect sentiments toward the economy. Rising gold prices might indicate concerns elsewhere, prompting investors to seek gold’s stability. Conversely, a booming stock market suggests optimism, encouraging investment and economic expansion.
It is important to note that gold rates in Pakistan can experience significant variations throughout the day, influenced by trends in the global market.
Gold Prices in the following cities
| City | 24k Gold per tola | 24k Gold 10 grams | 22k Gold per tola |
| Lahore | PKR 235,500 | PKR 201,910 | PKR 215,875 |
| Islamabad | PKR 235,500 | PKR 201,910 | PKR 215,875 |
| Karachi | PKR 235,500 | PKR 201,910 | PKR 215,875 |
| Peshawar | PKR 235,500 | PKR 201,910 | PKR 215,875 |
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How can I check the gold rate in Pakistan today
You can check the latest gold rate in Pakistan today by visiting a trusted financial news website or by contacting a local gold dealer.
Why do people invest in Gold
Throughout history, gold has been super important. People have used it to store value and trade stuff. Nowadays, besides making shiny jewelry, it’s a go-to investment when things get rough. It’s like a safety blanket for your money during uncertain times. Gold is also great at protecting against rising prices and weak currencies because it’s not tied to any particular government. So, when inflation is on the rise or currencies are losing value, gold remains steady and reliable.
Who buys the most Gold
Central banks are the biggest Gold holders. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency. High Gold reserves can be a source of trust for a country’s solvency. Central banks added 1,136 tonnes of Gold worth around $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest yearly purchase since records began. Central banks from emerging economies such as China, India and Turkey are quickly increasing their Gold reserves.
What does the price of Gold depend on
Lots of things can make the price of gold go up or down. When there’s political unrest or people worry about a big economic downturn, gold becomes more valuable because it’s like a safe harbor for your money. Also, when interest rates are low, gold tends to go up because it doesn’t pay any interest itself. But when the cost of borrowing money goes up, gold prices usually drop.
The price of gold is also closely tied to how the US dollar is doing because gold is traded in dollars. If the dollar is strong, gold prices usually stay under control. But if the dollar gets weaker, gold prices tend to go up.
So, whether gold goes up or down depends on a bunch of stuff like politics, the economy, and how the dollar is doing. But one thing’s for sure: gold is always there as a safe bet when things get shaky.
Several key factors can affect gold rates in Pakistan, including
International Gold Market Prices
The global price of gold is determined by supply and demand, as well as economic and political factors such as interest rates and currency exchange rates.
For example, when interest rates are low, gold tends to be more attractive to investors as it offers a higher return than cash. Similarly, when the value of a currency is declining, gold can be a safe option for investors as it preserves their purchasing power.
Condition of Economic
How the economy is doing can also change gold prices. When things are going well, like when the economy is growing, there’s less demand for gold because people have more money to spend on other things. But when the economy is struggling and people are worried about losing jobs or not having enough money, they might turn to gold because it’s seen as a safer investment.
Government spending can also shake things up. If the government is spending a lot, it could cause prices to go up because it might lead to inflation or make the country’s money worth less. So, whether the economy is booming or struggling, and depending on how much the government is spending, gold prices can go up or down.
Inflation
Inflation can lead to an increase in the price of gold as investors look for ways to protect their assets from the devaluation of the currency.
Government Stability
Government instability in a country can lead to increased demand for gold as a safe investment option. In times of uncertainty, people tend to buy more gold to protect their assets from potential risks such as currency devaluation or inflation.
Demand and Supply
The price of gold can go up or down depending on how much of it is available and how much people want it. When lots of folks want gold but there isn’t much around, prices go up. But when there’s plenty of gold and not many buyers, prices drop. This happens because the more people want something, the more they’re willing to pay for it. And when there’s not enough to go around, prices shoot up. On the other hand, when there’s too much of something and not many people are interested, prices go down because sellers need to attract buyers. So, whether gold prices go up or down is all about supply and demand.
Import and Export Duties
Government policies on import and export duty can also play a role in determining the gold rates in Pakistan. If the government increases import duty, the price of gold in Pakistan will increase as it becomes more expensive to import gold into the country. Similarly, if the government decreases import duty, the price of gold in Pakistan will decrease as it becomes cheaper to import gold into the country.
Seasonal Factors
Gold demand also increases during the wedding season and Eid events, as it is a traditional gift and is used as a form of savings. This leads to an increase in the price of gold during these periods.
It is important to note that these factors are interrelated and can affect each other. For example, if the global price of gold increases, it can lead to an increase in inflation, which can lead to an increase in demand for gold.
It is also important to note that the above list is not exhaustive; other factors may also play a role in determining gold rates in Pakistan.
