Following indications from the US central bank of a possible interest rate cut, global gold prices have risen, resulting in a record increase in gold prices in Pakistan as well.
On Thursday, the gold price per tola increased by Rs 4,600, bringing the cost to Rs 254,000 per tola in the country.
According to gold traders, the price of gold per ounce in the international market has risen by $60, and this increase is being reflected in the local market. The price of 10 grams of 24-carat gold has increased by Rs 3,944, now standing at Rs 217,764. Similarly, the price of gold per tola has risen by Rs 4,600, now costing Rs 254,000.
Abdullah, a representative of the All Pakistan Gems and Jewellers Association, told Urdu News that the trend of reducing interest rates by the US central bank is leading investors to consider gold as a safe investment, prompting them to purchase gold.
He further stated that the rise of $60 per ounce in the international market is now being reflected in the local market as well.
He noted that while the price of gold in Pakistan has increased by more than Rs 4,000 on Thursday, the local market is still undervalued by approximately Rs 4,000 compared to the international market.
He added that the increase in gold prices is significantly impacting the local market, with people now preferring to buy artificial jewelry due to the high cost of gold.
Haroon Chand, a representative of the Sarafa Association, explained that the Pakistani market trades in line with the international market, and any price increase in the global market will also be reflected in the Pakistani market.
Muhammad Waqas, a trader of artificial jewelry on Karachi’s Tariq Road, mentioned that due to the high gold prices, there has been a continuous increase in demand for artificial jewelry over the past month.