The prevailing worth of gold in Pakistan and in other countries of the world has always been a much sought-after commodity both for male and female of all ages. Gold prices vary daily as it is one of the most loved and valuable elements worldwide. This great value of the metal is owed not only to its glamour and elegance but also of its charm. For a female, the sizes and the designs of golden jewels are more significant than the rate and they are willing to pay any amount for the jewellery as they fall in love with it. Gold has always been the first love for every female/woman and numerous men since the advent of civilization as much as it is today. In the middle ages, it was altered for the item to be bought or sold rather than currency. The worth of this element in Pakistan , before the influx of the British government, was also determined in the same way. There was a time when the rates in one country were completely divergent from another, which made it a premium metal for foreign trade. Due to the increase of combined trade, interdependent economies and universally integrated banking system, the prices of this valuable element have got prime significance in the worldwide situation. The gold prices in Pakistan vary according to the purity of its karats. In numerous European countries, the rates are determined according to the Millesimal fineness scale, which is getting in vogue as a fresh technique of measuring the rates and purity of gold. The gold rates in Pakistan are directly affected by gimmick that a certain foreign lobby plays in order to deceive innocent businessmen in developing economies like Pakistan and India . Although the role of Pakistanisí diminishing purchasing power cannot be ignored, the fact remains that this foreign lobby targets gold, stock and currency markets one after another to rip off unsuspecting investors. It is said that the ongoing downturn in gold prices is a temporary phenomenon, which will be over before the close of the current FY2013-14 in Pakistan . The rate of 10 grams of gold was Rs43,714 on December 9 as compared to Rs45,428 on November 15 . While, the rate of 24k 10 grams Rs43,585 , 24k/tola Rs50,850 and 22k 10 grams Rs39,953 were recorded on January 9, 2014 . GLOBAL MARKET In the global market, the gold price has declined from approximately $1,290 per ounce to $1,240 per ounce over the corresponding period. As long as US economic figure explains growth, the likelihood of sooner-than-later tapering becomes more genuine, which should keep downward pressure on gold prices. Hypothetically, the price of gold is inversely proportional to the dollarís value, which means its value falls if the dollar ups strength. The gold rates started surging globally as soon as the US Federal Reserve resorted to quantitative easing in the aftermath of the 2008 international recession. Injecting liquidity into the market by buying $85 billion value of government bonds and financial capitals every month has kept discount rates at a low level. As a result of low policy rates in the US economy, investments in gold have soared internationally. The price of gold has risen over 60 percent since 2008 when it stood at $840 an ounce. The fact that gold rates fell to a 3-year low in June as soon as the USA Federal Reserve hinted that quantitative easing could be scaled back as early as September proves that the probability of rising discount rates rapidly leads to divestments from the valuable metal. GOLD PRICES (RS) (AS ON 09,JAN,2014) CITY 24K 10 GRAMS 24K/ TOLA 22K 10 GRAMS Karachi 43,585 50,850 39,953 Hyderabad 43,585 50,850 39,953 Lahore 43,585 50,850 39,953 Multan 43,585 50,850 39,953 Islamabad 43,585 50,850 39,953 Faisalabad 43,585 50,850 39,953 Rawalpindi 43,585 50,850 39,953 Quetta 43,585 50,850 39,953 CONCLUSION However, the gold prices in Pakistan are predicted to undergo a swift rise in the first half of 2014. Gold prices are going to start surging by March-2014. Investors are showing less interest in the stock exchanges and investing in precious metals like gold because of rising trend in gold prices. They have no fear in this kind of investment due to no future loss.
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