Gold prices in Pakistan have hit a new record, with the price of 24-karat gold soaring to Rs. 220,000 per tola (11.66 grams). This is the highest price ever seen in the country, and it comes at a time when the economy is facing many challenges.
Why Are Gold Prices Rising?
The increase in gold prices is being driven by both global and local factors. On the international side, gold prices have been rising due to uncertainty in the global economy, political tensions, and the expectation that central banks might slow down interest rate hikes.
Locally, the Pakistani rupee continues to weaken, and inflation is climbing, which is pushing the price of gold higher. Many people are turning to gold as a safe investment, hoping to protect their money from the effects of inflation and a falling currency.
How Is This Affecting the Market?
The sharp rise in gold prices has impacted the local jewelry market. With prices now so high, fewer people are buying gold jewelry. This is especially true for middle-income families who usually buy gold for weddings and other important events.
Instead of buying large pieces of jewelry, more people are opting for smaller items or turning to gold loans, where they use their gold as collateral for cash.
What’s Next for Gold Prices?
Experts believe gold prices may keep rising if the economy doesn’t improve. As long as global and local conditions remain uncertain, many people will continue to invest in gold as a safe asset.
Some economists are calling on the government to take steps to stabilize the currency and reduce inflation to help bring down gold prices. However, with no quick solutions in sight, it looks like the trend of high gold prices will continue for now.
