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Karachi, June 6, 2024*
The gold prices in Pakistan witnessed a significant surge on Thursday, with the precious metal gaining over Rs. 2,000 per tola. According to data released by the Karachi Sarafa Association, the price of 24-carat gold rose by Rs. 2,400 per tola, settling at Rs. 240,600.
The price of 10 grams of gold also saw a substantial increase, rising by Rs. 2,057 to Rs. 208,333. This significant hike in gold prices has been attributed to a combination of factors, including a weakening US labor market and anticipation of a September rate cut by the Federal Reserve.
GOLD PRICES BELOW COST DUE TO DECREASED BUYER PURCHASING POWER
Despite the surge in gold prices, the Sarafa Association noted that the price of gold has been kept under cost by Rs. 4,000 due to decreased buyer purchasing power. This suggests that while gold prices are rising, they are still not reflective of the metal’s true value.
GLOBAL GOLD PRICES HIT TWO-WEEK HIGH
In the international market, gold prices reached a two-week high, driven by signs of a cooling US labor market and anticipation of a September rate cut by the Federal Reserve. Spot gold rose 0.2 percent to $2,359.80 per ounce, while US gold futures were up 0.1 percent to $2,378.80.
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This surge in global gold prices has been seen as a positive development for the precious metal, which has been experiencing fluctuations in recent months. The increase in gold prices is expected to have a ripple effect on the jewelry and bullion markets, with many investors and consumers likely to take advantage of the rising prices.
MARKET ANALYSTS WEIGH IN
Market analysts have attributed the surge in prices to a combination of factors, including a weakening US labor market and anticipation of a September rate cut by the Federal Reserve. “The cooling US labor market has led to a decrease in interest rates, making gold a more attractive investment option,” said one market analyst. “Additionally, the anticipation of a September rate cut by the Federal Reserve has further boosted gold prices.”
IMPACT ON PAKISTAN’S JEWELRY AND BULLION MARKETS
The surge in prices is expected to have a significant impact on Pakistan’s jewelry and bullion markets. Many jewelers and bullion dealers are likely to increase their prices, taking advantage of the rising gold prices. This could lead to an increase in the prices of jewelry and other gold products, making them more expensive for consumers.
However, some market analysts believe that the surge in gold prices could also lead to an increase in demand, as investors and consumers seek to take advantage of the rising prices. “Gold is seen as a safe-haven asset, and the surge in prices is likely to attract more investors and consumers,” said another market analyst.
Overall, the surge in prices is a significant development for the precious metal, and its impact is likely to be felt in the coming days and weeks. As the market continues to fluctuate, investors and consumers are advised to keep a close eye on gold prices and take advantage of any opportunities that may arise.
This article shows the recent surge in gold prices in Pakistan, with a rise of Rs. 2,400 per tola, reflecting significant market dynamics. Factors such as a weakening US labor market and the anticipation of a September rate cut by the Federal Reserve have driven this increase. Despite this, the Karachi Sarafa Association notes that prices are still Rs. 4,000 below cost due to decreased buyer purchasing power. This rise aligns with global trends, where gold hit a two-week high. For more details on current gold rates, you can visit mypricezone.com to stay updated about today’s gold rate in Pakistan. Investors should monitor these trends closely for potential opportunities.