The price of gold in the global and local market reached the highest level in history

alertnews247

Sep 22, 2024

Gold prices have soared to unprecedented levels, both globally and locally. In recent weeks, a variety of factors including inflation concerns, global economic uncertainties, and geopolitical tensions have driven investors toward safe-haven assets such as gold. As of this week, the price of gold has reached historic highs, marking a significant moment for precious metals markets around the world.

Gold Prices in the International Market

On the international bullion market, the price of gold surged by $10 per ounce, pushing the value to a record-breaking $2,622 per ounce. This rise in gold prices comes amid ongoing inflationary pressures and concerns about global economic growth. Many investors are turning to gold as a store of value, leading to increased demand and driving prices higher.

Impact on Local Market in Pakistan

In Pakistan, this rise in global gold prices has significantly impacted the local market. The price of 24-karat gold has jumped by Rs 500 per tola, bringing the total to Rs 272,500. For those measuring in grams, the price of 10 grams of 24-karat gold has increased by Rs 429, reaching Rs 233,625.

This rapid rise has led many to speculate on whether these high prices will continue or if a correction in the market is imminent. Regardless, gold's standing as a favored investment asset in Pakistan remains unchanged, especially as the rupee faces depreciation and inflation continues to bite.

Comparison with Silver Prices

Interestingly, while gold prices have soared, silver prices have remained stable. As of the latest data, the price of silver per tola has stayed unchanged at Rs 2,950, and the price of silver per 10 grams remains steady at Rs 2,529.14. This stability in silver prices could suggest that silver is not experiencing the same investment demand as gold.

FAQs

Q1: Why are gold prices increasing so dramatically?

Gold prices are rising primarily due to economic uncertainty, inflation fears, and increased demand from investors seeking a safe asset during turbulent times.

Q2: How often do gold prices change?

Gold prices fluctuate frequently and can change multiple times throughout the day based on global economic trends, market demand, and geopolitical events.

Q3: What is the significance of 24-karat gold?

24-karat gold is considered pure gold, with no additional metals mixed in. It is often more expensive than lower-karat gold due to its purity.

Q4: Why haven’t silver prices risen like gold?

While silver is also a precious metal, it typically does not experience the same level of investment demand as gold during times of economic uncertainty. This is why silver prices have remained stable even as gold prices surge.

Q5: Is this the highest price gold has ever reached?

Yes, as of this report, the price of gold has hit an all-time high of $2,622 per ounce on the global market, and Rs 272,500 per tola in the local market in Pakistan.

Conclusion

Gold has reached historic price levels, reflecting the growing demand for safe-haven assets in a time of economic instability. While gold prices continue to rise, silver remains stable, offering a contrasting trend in the precious metals market. Investors and consumers alike are closely watching these developments, with many wondering if gold's upward trajectory will persist or if a market correction is on the horizon.

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