Gold Price Hits Historic High
The price of gold in Pakistan has hit a historic high, leaving many middle-class families and jewelers feeling the heat. With an increase of Rs 6,900 per tola in just one day, gold has now become a dream that is slipping further away for the average citizen. Rising global conditions, including trade wars and geopolitical tensions, have led to this surge, and the effects are being felt everywhere, from international markets to local jewelers.
In this article, we’ll explore the reasons behind the soaring gold prices, their impact on different segments of society, and how the market is evolving in response.
Daily Price Surge: Rs 6,900 Increase in One Day
The past few days have seen significant fluctuations in gold prices. On the heels of a Rs 5,500 per tola hike yesterday, today witnessed an even more dramatic rise of Rs 6,900 per tola. According to the All Pakistan Bullion Jewelers Association, the price of gold per tola has now reached an eye-watering Rs 4,35,100, while the price of 10 grams has jumped by Rs 5,916 to Rs 3,73,028.
These consistent hikes have made it increasingly difficult for ordinary Pakistanis, especially the middle class, to invest in gold. What was once considered a safe and reliable asset for families is now out of reach for many.
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International Market Trends and Impact
To understand why gold prices are rising so sharply in Pakistan, we need to look at global trends. Gold prices in the international market have surged by $69 per ounce, bringing the price of 24-karat gold to a historic high of $4,140 per ounce. This increase in the global market has directly impacted local prices.
Investors around the world are flocking to gold as a safer investment amidst the turmoil in global trade. The ongoing tariff wars and geopolitical instability are driving many to seek security in gold rather than in stocks or bonds, leading to a worldwide increase in demand.
As the global price rises, Pakistan’s market inevitably follows suit. Local jewelers and buyers are finding it increasingly difficult to cope with the constantly rising prices of gold.
| Parameter | Details |
|---|
| Current Price of Gold (per Tola) | Rs 4,35,100 (increased by Rs 6,900 in one day) |
| Price of Gold (10 grams) | Rs 3,73,028 (increased by Rs 5,916 in one day) |
| Recent Price Increase (1 Day) | Rs 6,900 (today’s increase in per tola price) |
| Price of Gold in Global Market (per ounce) | $4,140 (increased by $69 per ounce) |
| Global Market Factors | Tariff wars, geopolitical tensions, weakened US dollar |
| Key Impact on Pakistan | Gold prices increase in local markets, making it unaffordable for many |
| Alternative Investments | Rolled gold, silver jewelry |
| Impact on Jewelers | Business slowdown, reduced sales due to high prices |
| Cultural Impact | Middle class struggling to buy traditional gold for weddings and savings |
| Future Price Outlook | Likely further increases in gold prices |
Reasons Behind the Soaring Gold Prices
Several factors are driving the current surge in gold prices. Perhaps the most significant is the ongoing trade war between major economies, which has created instability in global markets. Countries involved in the tariff conflict are experiencing slowdowns in exports and manufacturing, which has prompted investors to withdraw their capital from these sectors and invest heavily in gold.
Additionally, geographical tensions and a weakening US dollar are contributing to the rise in gold prices. As the dollar weakens, gold becomes a more attractive investment option. This trend is being seen not only in Pakistan but across the globe, where investors are increasingly turning to gold as a safe haven during times of uncertainty.
Gold has become more valuable than platinum for the first time, signaling just how much demand has surged for this precious metal. As supply remains relatively stable, but demand continues to grow, prices are expected to keep rising.
Shift in Investment Trends Among Pakistanis
As gold prices rise, investors are increasingly turning to gold as a store of value. Traditionally, people in Pakistan have used gold as a reliable means of saving money, especially in times of economic uncertainty. However, with the increasing cost of gold, many are now considering other options, such as silver and rolled gold jewelry, which are seen as more affordable alternatives.
For the middle class, gold was once a preferred choice for both savings and marriage traditions. But with the steep price increases, rolled gold and silver jewelry are now more common. Middle-class families are finding it difficult to buy the traditional amount of gold for weddings and other occasions, and instead are opting for lighter, more affordable options.
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Effects on Middle and Lower-Income Groups
The continuous rise in gold prices has had a profound impact on Pakistan’s middle and lower-income families. Gold, once seen as a reliable form of investment and a symbol of wealth, is now out of reach for most people. What was once a middle-class asset is now becoming a luxury reserved for the wealthy.
In the past, people would invest in gold to build assets or save for future generations. But with gold prices soaring, many are now looking for alternatives. Silver has become a popular choice, as it offers a lower-cost option for people looking to invest or purchase jewelry. For weddings, rolled gold has emerged as a more affordable substitute for traditional gold jewelry.
The price hike is making it difficult for the middle class to maintain their cultural and traditional practices, where owning gold jewelry for occasions like weddings is a long-standing norm.
Jewelers Struggling Amid Soaring Prices
The rapid increase in gold prices is not only affecting ordinary buyers but also jewelers, who are witnessing a slowdown in business. With gold becoming increasingly expensive, fewer people are buying gold jewelry, and many jewelers are facing financial difficulties. The cost of gold is creating a standstill in the jewelry market, and many jewelers are concerned about how long they can survive in this volatile environment.
While gold prices continue to rise, the number of customers entering jewelers’ shops has decreased dramatically. Jewelers are worried that this trend will continue, making it harder to sustain their businesses in the future.
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Expert Insights and Future Outlook
Experts from the All Pakistan Gem and Jewelers Association believe that the rise in gold prices is linked to a weakening dollar. As the dollar loses its value, demand for gold increases globally, and this trend is reflected in the Pakistani market.
Looking ahead, there is a strong possibility that gold prices will continue to rise, especially as global trade tensions persist and the value of the dollar fluctuates. For Pakistanis looking to invest in gold, this might be a good time to consider alternatives such as silver or other safe investments.
Experts are also advising jewelers to diversify their product offerings, possibly focusing on more affordable options like silver jewelry, which is becoming increasingly popular.