In a volatile political and economic climate, domestic gold prices in Pakistan reached new record highs on Wednesday. The cost for 10 grams of gold escalated to Rs236,197 and one tola to Rs275,500, marking increases of Rs2,144 and Rs2,500 from the previous day, respectively.
The All Pakistan Gem and Jewellery Association (APGJA) linked the rise in local gold prices to a significant $25 per ounce increase in global markets, where prices soared to $2,653.
Mohammad Haseen Qureishi, Chairman of the All Karachi Jewellers and Manufacturers Association, noted the price spike deterring buyers, leading to only 30-35% of usual consumer traffic in stores. He observed that customers who previously purchased 10-tola jewellery sets now opt for smaller purchases ranging from two to three tolas, while some are buying items as light as half a tola due to reduced purchasing power.
Samiullah Tariq, Head of Research and Development at Pak Kuwait Investment Company Ltd, mentioned a shift in Pakistanis’ investment preferences. Despite economic uncertainties, more people are choosing gold over real estate and US dollars.
APGJA Chairman Haroon Rasheed Chand highlighted a global trend in which investors gravitate towards gold following interest rate cuts by the Federal Reserve and the Chinese central bank. The unstable political landscape, including recent Israeli attacks on Gaza and Lebanon and economic turmoil in several countries, further fuels this shift.
