Karachi’s gold market continues to defy economic challenges, with prices reaching new heights. The rate for one tola of gold has increased by Rs300 to Rs261,000, while the 10-gram rate has jumped by Rs257 to Rs223,765. Notably, these increases occur despite stable global gold rates and rupee-dollar parity.
The All Sindh Saraf and Jewellers Association’s decision to raise domestic gold rates has made the precious metal unaffordable for many families. However, investors remain attracted to gold due to its consistent price growth since January. Compared to the start of the year, gold prices have risen by Rs35,408 per 10-gram and Rs41,300 per tola.
According to Samiullah Tariq, Head of Research and Development at Pak Kuwait Investment Company, gold’s appeal lies in its ability to hedge against currency fluctuations. This is particularly relevant in Pakistan, where investors seek stability amidst economic uncertainty. After a three-month suspension, gold imports have resumed, with 28kg worth $2.2m imported in July.