Gold prices in Pakistan witnessed a remarkable increase of Rs6,500 per tola on Wednesday, driven by heightened demand for safe-haven assets in the backdrop of the ongoing Israel-Hamas conflict in the Middle East.
After a month-long hiatus, the bullion market in Pakistan reopened, revealing a significant shift in gold prices.
Latest rates
The 24-carat gold was quoted at Rs206,000 per tola in the provinces of Punjab, Balochistan, and Khyber Pakhtunkhwa, while Sindh maintained a rate of Rs205,000 per tola, according to data shared by the All Pakistan Gems and Jewellers Sarafa Association (APGJSA).
The recent sharp uptick in gold prices follows a contrasting trend, as Pakistan's bullion market experienced a steep fall of Rs15,500 per tola earlier when the Pakistani Rupee showed remarkable strength against the US Dollar.
International factors
The surge in international gold rates, linked to the turmoil in the Middle East, played a pivotal role in the rise of gold prices within Pakistan. In the global market, the gold rate per ounce was recorded at $1,872, marking a $16 increase compared to the previous day, as reported by APGJSA.
It is important to note that gold prices in Pakistan are significantly influenced by the trajectory of the US dollar and international market rates, as Pakistan remains a net importer of this precious metal.
Meanwhile, the price of 10 grams of gold reached Rs175,754, marking an increase of Rs4,715 on Wednesday. In contrast, silver rates remained unchanged at Rs2,500 per tola.
Bullion market reopens
After almost a month of silence, the bullion market in Pakistan resumed activities. The hiatus was largely attributed to discussions within the industry aimed at safeguarding the market from undue speculation, following increased scrutiny by law enforcement agencies.
The caretaker government had initiated a significant crackdown on illegal economic activities, such as smuggling and hoarding, last month. This crackdown sought to take action against individuals involved in market speculations, yielding positive outcomes.
The Pakistan Army's top brass also pledged full support to the government's efforts to curb illegal activities that undermine economic stability, growth, and investor confidence, as announced in a press release by Inter Services Public Relations Pakistan (ISPR) last month.
As Pakistan continues to navigate the dynamics of global markets and international geopolitical developments, gold prices are expected to remain a focal point for both investors and policymakers.
