A big increase of Rs 4600 has been recorded in the price of gold per Tola in the country once again, which has increased concerns for the public and investors
According to the All Sarafa Association, 24-carat gold per tola has become more expensive by Rs 4,600 to reach Rs 499,962. Similarly, the price of 10 grams of gold has increased by Rs 3,943, after which the new price has become Rs 428,636. On the other hand, silver per tola has also become more expensive by Rs 326 to reach Rs 8,260.
An increase in gold prices has also been seen in the global market, where gold per ounce has reached $ 4,776 after an increase of $ 46. According to experts, the global economic situation and increased demand are causing continuous fluctuations in gold prices.
Local traders say that the ongoing tension and economic instability on the global horizon are adversely affecting the gold market, which may result in a significant decline in prices. Gold is usually expensive in times of uncertainty (war or political crisis), but the current economic uncertainty is taking a different turn:
When stock markets fall, big investors sell gold reserves to meet their margin calls in order to get cash. Decrease in consumer purchasing power: Due to global inflation, there has been a significant decrease in the purchase of jewellery by ordinary consumers, which has affected the physical market.
The price of gold in Pakistan is linked not only to the global market but also to the value of the rupee. According to experts. If gold falls by $50 to $100 per ounce in the global market, then a major decrease of Rs. 5,000 to Rs. 10,000 per tola can be seen in Pakistan.
Dealers at the local bullion market say that buyers are currently absent from the market due to fears of this potential drop in prices, and only those who need immediate cash are selling gold. Experts advise investors to remain cautious for now, as technical indicators are showing that gold could break its “support level” and fall further.
Read also: Uncertainty in global market: Gold prices likely to fall sharply
