Gold Prices Surge in Pakistan, Marking Positive Start for the Week

Breaking the trend of four consecutive weekly drops, the domestic gold market has opened this week on a positive note. The price of 24-karat gold has experienced a notable surge, increasing by Rs1,500 per tola to reach Rs215,400.

According to the Karachi Sarafa Association, the price for 10-gram 24-karat gold stands at Rs184,671, showing a daily rise of Rs1,286. Similarly, the price for 10-gram 22-karat gold has been reported at Rs169,282.

In contrast, silver prices in the domestic market remain stable. The cost of 24-karat silver is holding at Rs2,600 per tola and Rs2,229.08 per 10-gram.

This sudden increase in domestic gold prices can be attributed to the upward movement in international prices. At present, international spot gold is trading at $2,032.5 [12:42pm PST], reflecting a 0.7% increase compared to the previous session's closing.

It is noteworthy that the international market experienced two consecutive weekly losses last week due to diminishing expectations of a rate cut. However, escalating tensions in the Middle East have boosted the demand for safe-haven assets, indicating a bullish trend for gold.

Despite the continuous strengthening of the Pakistani Rupee (PKR) exerting pressure on domestic gold, the market saw a counterbalance with the sudden upturn in international prices.

Recent Developments in the Domestic Market:
On Thursday, January 18, 2024, a meeting of Karachi Gold Traders took place under the chairmanship of Qasim Shikarpuri at Karachi Gold Bullion. Participants included all members of Karachi Bullion Exchange, representatives of ARY GOLD, and all GOLD LAB owners in Karachi.

The unanimous decision was made to form a joint committee comprising all stakeholders to enhance the management of physical gold trading. The primary goal of this committee is to take effective steps in managing gold trading and rates more efficiently. Additionally, the committee will collaborate with government institutions, offering consultation and assistance in these matters.

Addressing concerns over negative propaganda on social media regarding gold rates, the attendees strongly condemned such actions. It was emphasized to curb elements that harm the gold industry through misleading information.