Despite the financial and economic market uncertainties, gold has been a standout performer as compared to almost all of the other assets. Gold price in the international market rises 16% in the first three months of 2016, which is the biggest quarterly growth since 1986. Its prices rose from 1065 US Dollars per ounce in January 2016 to 1236 US Dollars in March 2016. The gold rate at the end of March 2016 was however slightly lower, 1220 USD per ounce. The United States forecasts an uplift of about $8 in the prices of gold during the month of April. The rising inflation and lower real interest in the international market can fuel a growth in the gold prices in USA.
Gold Prices in Pakistan
Put some of your savings in gold, the gold prices in Pakistan are fortuned to bloom in the coming few months. It is currently 49,500 PKR per Tola (24K) and 42,428 PKR per10 grams (24K) according to the Karachi SarafJewellers Association. It rose from 42,228 PKR per tola in January 2016 to 49500 PKR per 10 grams in March 2016 . The figures show that currently the gold prices in Pakistan are booming and blooming. Media reports are very much supporting the aforementioned statement of a continual growth in the gold prices this year.
Effects of the International Market on the Gold Prices in Pakistan
The gold prices in Pakistan saw an uplift of just about 16% in the first three months of the year 2016, it rose from 36,524.5 PKR per 10 grams in the early January to 42,428 PKR per 10 grams in the late March. The international market seems to have a pretty direct impact on the gold prices in Pakistan. Here are the few important events in the international market that affected the gold prices in Pakistan in this calendar year.
- The real interest remained low since the beginning of 2016
- The value of US Dollar went down having a direct impact on the gold prices in Pakistan
- The rising demand of gold by the growing economic powers such as China,India and Japan.
Future Prediction on Gold Prices in Pakistan
The international investors are expecting a mixed trend in the gold market in the upcoming months. They are expecting a volatility in the international gold market.Gold prices in Pakistan can fall due to its ending wedding season in April-May 2016 and due to improvement in US dollar value. Some analysts are also expecting a hike in the gold prices. The rising demand of the gold in Asian countries such as China and India is fueling the gold demand. Demand in China is rising due to its ongoing economic turmoil and demand of gold in India is rising due to its ongoing wedding season. The low interest rates in America and the progress of USD will also play an important role in affecting gold prices in Pakistan.