By ISLAMABAD: In a noteworthy development, gold prices in Pakistan soared to unprecedented heights on Wednesday, surpassing the Rs250,000 per tola milestone for the first time.
According to media reports, the surge comes amidst a record increase in the international gold rate in recent days, driven by escalating tensions in the Middle East, further solidifying gold’s status as a safe-haven asset.
According to the All Pakistan Gems and Jewellers Sarafa Association (APGJSA), the local gold price per tola witnessed a substantial rise of Rs2,200 on Wednesday, reaching Rs251,900. Similarly, the price for 10 grams of gold climbed to Rs215,964, marking an increase of Rs1,887.
At the time of reporting, the international gold rate stood at $2,387.5 per ounce, marking a significant surge from approximately $2,000 recorded in February this year. The uptrend follows a notable increase in gold prices on Tuesday, when the per tola price surged by Rs2,400 in Pakistan.
Meanwhile, Head of Operations at Interactive Commodities Pvt Limited Adnan Agar shared insights into the market sentiment, highlighting expectations for a potential correction, provided there is no escalation in the Middle East. Agar underscored the tendency for profit-taking in gold trading, attributing it to the lack of dividend yield in gold and other commodities.
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He further elaborated on the current market dynamics, noting a slight apprehension among buyers despite gold’s positive outlook, which some speculate may reach $2,600-$2,700 by year-end. However, Agar cautioned against ruling out the possibility of further tensions in the Iran-Israel confrontation throughout the remainder of the year.
Furthermore, Agar also highlighted China’s sustained interest in gold acquisition over the past year, alongside expectations of high inflation in the US and the unlikelihood of rate cuts in the near future.
Meanwhile, Chairman of the Pakistan Gems Jewellery Traders and Exporters Association (PGJTEA) Akhtar Tesori shed light on the impact of rising gold prices on the local gold jewellery business. Tesori highlighted a significant decline in gold jewellery sales, attributing it to high inflation and financial hardships faced by the general populace.
He noted a shift towards selling family heirlooms like gold bangles, resulting in an estimated 80 per cent decrease in gold jewellery sales compared to the previous year.
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