Gold Prices Surge in Pakistan, International Market Shows Decline. However, the price of gold in Pakistan continued its upward trend on Monday, following gains from the previous week.
The All Pakistan Sarafa Gems and Jewellers Association (APSGJA) reported that the price of 24-carat gold rose by Rs2,000 per tola and Rs1,714 per 10 grams, reaching Rs237,300 and Rs203,444, respectively.
In contrast, the international market saw a decrease in the price of gold by $5, reaching $1,972 per ounce.
Last week, the fluctuation in gold prices in domestic and international markets was attributed to the uncertainty surrounding the increase in the US debt limit. If the current debt limit of $31.4 trillion is not raised, it could result in the United States defaulting for the first time.
Read: Gold Prices in Pakistan Experience Slight Increase Amid Rupee Instability
Several factors, including economic and political unrest, high inflation, and currency depreciation, have contributed to the recent volatility in the domestic gold market. However, in uncertain times, people turn to gold as a safe investment and hedge against risks.
The price of gold reached an all-time high of Rs240,000 per tola on May 10, driven by heightened political uncertainty following the arrest of Pakistan Tehreek-e-Insaf (PTI) Chairman Imran Khan. However, as the international rate declined, the domestic rate followed suit.
The jewelers’ association also highlighted that the local gold market in Pakistan is currently “overpriced” by Rs5,000 per tola compared to the Dubai bullion market. This indicates that gold in Pakistan is more expensive than the global market.
Furthermore, the price of silver witnessed a slight increase of Rs50 per tola and Rs42.87 per 10 grams, reaching Rs2,900 and Rs2,486.28, respectively, according to data provided by the association.
