Gold has always been considered one of the most stable and reliable investment assets in Pakistan. As of 2024, gold prices in Pakistan have experienced significant fluctuations, driven by both international and local factors. This blog will explore the trends of gold prices over the past months, years, and even the last decade, and provide a deeper understanding of the forces influencing the market in 2024.
1. Gold Prices in Pakistan – A Snapshot for 2024
As of October 25, 2024, the price of gold stands at PKR 24,294.98 per gram and PKR 283,371.90 per tola. This represents a slight drop from earlier in the month when prices peaked at PKR 24,387.94 per gram and PKR 284,456.10 per tola.
While these daily fluctuations might seem small, they are part of a larger trend that has played out over the past few months and years. To understand the recent price movement better, it is important to consider both historical patterns and current drivers affecting the gold market.
1.1 Trends in 2024
In 2024, gold prices in Pakistan have mirrored global trends, influenced by factors like:
- Geopolitical tensions in the Middle East have caused a spike in demand for gold, pushing up prices.
- Global economic slowdown and inflation concerns have driven gold prices higher, as it continues to be a safe-haven asset.
Prices peaked in August 2024, when gold hit PKR 24,500 per gram, driven by rising inflation and a volatile Rupee exchange rate. Since then, the price has been volatile but generally on a downward trend as the Rupee stabilized temporarily against the USD in September.
1.2 Historical Context: Past Year’s Gold Price Trends
Looking back over the past year, gold prices in Pakistan have experienced a significant rise, reflecting broader global economic conditions. In October 2023, the price of gold per tola was around PKR 210,000, while in October 2024, it reached over PKR 280,000, marking a near 33% increase.
Key factors for this rise over the past year include:
- Rising inflation: With inflation hitting double digits in Pakistan in 2023 and 2024, gold has become an attractive asset for preserving wealth.
- Currency depreciation: The Pakistani Rupee lost value against the US Dollar, which drove the price of gold higher locally.
- Political instability: Both domestic political uncertainty and global geopolitical tensions fueled demand for gold, leading to higher prices.
1.3 Decade-long Trend (2014-2024)
Gold prices in Pakistan have seen a sharp upward trajectory over the past decade. In 2014, the price of gold per tola was just around PKR 45,000-50,000. Fast forward to 2024, and the price has reached almost PKR 280,000, reflecting a 560% increase over ten years.
This massive increase has been driven by:
- Global economic instability: The 2008 financial crisis set the stage for gold’s rise in the following decade, with global economic instability continuing through the 2010s.
- COVID-19 pandemic: The economic fallout from the pandemic in 2020 led to a surge in gold prices as investors sought stability during uncertainty.
- Currency devaluation: The continued weakening of the Pakistani Rupee over the past decade has pushed gold prices significantly higher in the local market.
. Recent Fluctuations and Their Causes in 2024
While we have seen a steady rise in gold prices over the years, 2024 has brought its own set of drivers causing fluctuations.
2.1 Geopolitical Tensions
Rising tensions in the Middle East and other global regions have led to increased demand for gold, pushing prices up, especially during the first half of the year.
2.2 Depreciation of the Pakistani Rupee
A weak Pakistani Rupee has directly contributed to rising gold prices. The Rupee lost about 20% of its value against the USD between 2022 and 2024, leading to higher gold import costs.
2.3 Inflation and Local Economic Instability
Domestic inflation rates have consistently been in double digits, making gold an attractive hedge against rising costs and loss of purchasing power.
3. Why Gold Investment Remains Popular in Pakistan
3.1 Hedge Against Inflation
Given Pakistan’s persistent inflation, gold has proven to be a reliable store of value. As the value of the Rupee declines, gold prices rise, helping investors preserve wealth.
3.2 Safe Haven
During periods of political and economic instability, both domestically and globally, gold has historically been the asset of choice to safeguard wealth.
3.3 Cultural Importance
Gold plays an essential role in Pakistani culture, particularly in wedding traditions, making it a valued possession beyond just an investment.
4. The Future of Gold Prices in Pakistan
Given current global and local factors, it is likely that gold prices in Pakistan will continue to rise in the long term, albeit with short-term fluctuations. The weak Rupee, ongoing inflation, and geopolitical tensions will all play a role in keeping demand high for this safe-haven asset.
Predicted Future Trend:
- End of 2024: With ongoing inflation and potential instability, gold could hit PKR 300,000 per tola by the end of 2024.
- 2025-2030: As the global economy remains unpredictable, and with local currency challenges, gold is expected to continue its upward trajectory, though technological advancements and changes in global monetary policy could affect this.
Přijetí hypoteční platby může být problematické pokud nemáte rádi
čekání v dlouhých řadách , vyplnění mimořádné
formuláře , a odmítnutí úvěru na základě vašeho úvěrového skóre .
Přijímání hypoteční platby může být problematické,
pokud nemáte rádi čekání v dlouhých řadách , podávání extrémních formulářů , a odmítnutí úvěru na základě vašeho
úvěrového skóre . Přijímání hypoteční platby může být problematické , pokud
nemáte rádi čekání v dlouhých řadách , vyplnění
extrémních formulářů a odmítnutí úvěrových rozhodnutí založených
na úvěrových skóre . Nyní můžete svou hypotéku zaplatit rychle
a efektivně v České republice. https://groups.google.com/g/sheasjkdcdjksaksda/c/JdAmzzPgY0A