The year 2024 witnessed significant volatility and record highs in the gold market, both locally and globally. In Pakistan, gold prices rose by Rs52,600 per tola, marking a 23.9% increase from the closing rate of Rs220,000 per tola on December 30, 2023.Â
The All Sindh Saraf Jewellers Association reported that gold closed the year at Rs272,600 per tola, while international prices stood at $2,614 per ounce, reflecting a 25.5% rise from $2,082 at the end of 2023.
The local market saw its peak on October 30, with gold reaching Rs287,900 per tola as international rates hit $2,784 per ounce. The lowest rates were recorded on February 14, 2024, at Rs210,800 per tola and $2,010 per ounce.Â
According to Bloomberg, gold posted one of its largest annual gains in 2024, advancing by 27%.Â
Despite the soaring prices, domestic trade activity plummeted to just 5-10% of normal levels, as high costs led many to sell gold or make smaller purchases to hedge against economic uncertainty.
Globally, gold prices were driven by geopolitical tensions and economic instability. Conflicts in the Middle East and the prolonged war in Eastern Europe pushed investors towards gold as a safe-haven asset. Economic factors, including interest rate cuts by central banks in the US and Europe and inflationary pressures, further boosted demand. A lenient monetary policy by the US Federal Reserve and slowing economic growth in China added to the appeal of gold.
In Pakistan, gold traded with a $20 premium against international rates, influenced by domestic demand and currency fluctuations.Â
Analysts anticipate continued volatility in 2025, with geopolitical and economic uncertainties expected to sustain gold’s status as a secure investment.
