GOLD GLEAMS BRIGHTER: PRICES SHINE IN PAKISTAN
Karachi, Pakistan – January 15, 2024: Prices Shine in Pakistan for Fourth Consecutive Day. Pakistani gold buyers witnessed a four-day golden streak this week, but prices retreated slightly today after reaching a four-day high on Thursday. While the upward trend paused, 24-karat gold remains stable at Rs. 221,000 per tola (37.5 grams), reflecting a notable gain of Rs. 1,600 since Tuesday.
Driving the Shine:
Several factors fueled the initial price surge:
- Weakening Rupee: The depreciation of the Pakistani Rupee against the US Dollar is a key driver. As the Rupee falls, gold, a traditional safe-haven asset, attracts investors seeking to hedge against currency fluctuations. This increased demand pushes up domestic gold prices.
- Global Trends: International gold markets also played a role, with spot gold prices experiencing a modest bump earlier in the week. This external influence further bolstered local prices.
- Seasonal Influences: Approaching festive seasons typically see increased demand for gold in Pakistan, adding to the price momentum.
A Pause in the Rally:
While market forces initially drove prices higher, they seem to have stabilized on Friday. Factors like:
- Profit-taking: Some investors may be choosing to lock in profits after the substantial gains of the past few days.
- Technical corrections: Minor adjustments within the market can lead to temporary price fluctuations.
- External Influences: Global gold markets could also be contributing to the price stabilization.
