Today Gold Price in Pakistan

Today Gold Price in Pakistan

KARACHI: Gold prices in Pakistan continued to decline for the second consecutive day after the rupee made massive gains against the dollar on Tuesday. The domestic currency opened at Rs150 per ounce, making it the fourth-highest priced gold in the world, according to global market intelligence firm S&P Global Market Intelligence (GMI) data. Meanwhile, the price of silver fell below Rs100 during the trading session on March 28. On the other hand, platinum and palladium remained on a positive note since they were down by 10 percent each. However, both metals have been on an upward trend in recent weeks, with their values rising by over 20 percent and 15 percent respectively.

The international financial markets have been on a bullish note lately, buoyed by hopes that the Organization of Petroleum Exporting Countries and its allies may continue to pump more oil into Asia’s third-largest economy despite the ongoing war between Russia and Ukraine. But it seems that these expectations are being thrown out by what the latest report from Goldman Sachs said about the Russian invasion of Ukraine. “The current situation is similar to when we had two wars going on simultaneously,” said Janus Henderson, chief investment officer at Goldman Sachs. While he did not name names, he said, “It was almost like you could see them coming for a while, but then all of sudden just as suddenly as that there was a pause, and now we’re back to normal.” As such, he added, “I think it shows that this conflict has changed the geopolitical landscape quite significantly, which is good news. It will give us a lot more stability going forward.” But for now, analysts agree that the war between Russia and Ukraine is far from over, so the outlook remains uncertain.

“Even if you look at how much commodity prices are dropping right now, the difference is largely due to Russia’s actions,” says Abraaj Rangar, head of FX strategy at HDFC Securities. He said the impact of sanctions imposed by Western countries on energy and food supplies is causing inflationary pressures across the globe. “The idea that the West would come through and fix things immediately is unrealistic. So even though there is some sort of stabilization from now until around April, it’s still too late to fix it in a meaningful way. I think that’s why you have seen a sustained erosion in oil prices, particularly in India,” he told Financial Express Online. Even so, Rangar sees green shoots emerging on the horizon for commodities and equities after the first quarter of 2023.

Gold Rate in Pakistani Today

“Gold seems to be underperforming a little bit,” he notes. He also points out several factors which are likely contributing to the fall in spot gold prices. For one, he notes that gold-producing nations are struggling to raise funds to finance production, adding that many central banks worldwide are trying to curb inflation. Additionally, Rangar noted that many large investors prefer to hold their bullion instead of selling it because they are afraid of experiencing losses if they sell. And finally, he pointed out that the U.S. government is planning new regulations on mining companies and miners to safeguard consumer interests in light of concerns about global warming and climate change.

“We’ve seen a significant rise in gold prices over the past year,” he adds. “If anything, it’s exacerbated by the fact that demand has gone up so greatly during this time, which means the supply chain has gotten congested. If you compare it to the previous years, I think it’s getting more favorable. With gold prices rising, it’s becoming difficult for governments to keep financing infrastructure projects. This is the reason for higher taxes. All of these things put pressure on growth.

In addition, the war between two major powers — China and the United States — has affected the stock market and raised fears of recessionary effects on the global economy. Thus, gold is seen as a safe haven asset among investors, helping to protect individuals and businesses from economic uncertainty.

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It’s kind of a hard thing to predict,” says Ankit Maheshwari, managing director (research and business development) at Geojit Financial Services Limited (GFSL). “You can say that the bottom line was bad or healthy, but we don’t know whether it’ll turn around or not,” he tells Fitch Ratings. “So it depends on what happens. Some people bought before the announcement, and others bought before the war started. What happened after (the war) is another matter. We still need to wait for the results of the study. But on the whole, I think gold remains a very important hedge asset, especially in times of turmoil.”