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How marriage season and other factors affect gold prices in Pakistan?

Gold is a well known and more valuable investment opportunity for all the investors as it gives gives good returns. Investment in gold is usually a safe kind of investment that’s why many investors are willing to invest in gold. However, gold prices have a tendency to fluctuate with unusual patterns.
Gold is a precious gift and valuable metal and it is a sign of wealth, happiness and optimism. Asian people take it as a ‘valuable metal’ or we can say that gold has high value in south Asian countries like India and Pakistan. In Pakistan general perception is that no marriage can ever happen without gold. So escalation in gold prices in Pakistan is very much expected by the investors in marriage season.

The gold prices in Pakistan have increased since February this year. The gold prices in Pakistan increased from Rs 44450/tola in December 2015 to Rs 48,550/tola in February.Prices increased in February because that was the peak time marriage season in Pakistan.

In the table given below it can be seen that  gold prices fluctuate in marriage season.The marriage season in Pakistan starts from December and ends in March and every one wants to buy gold in these months .People buy gold according to their status and purchasing power. Table 1 clearly shows the growth of gold prices in Pakistan. There were huge fluctuations in the gold prices from December 2015 to March 2015 and till in the month of September 2016 the prices goes up.

                                             Table 1 :

Gold prices  24k 10 gram gold rates 24k per tola gold rates
December 2015 RS 38,100 RS 44,450
January 2016 RS 39,171 RS 47,700
February 2016 RS 41,614 RS 48,550
March 2016 RS 42,857 RS 50,000
April 2016 RS 42,557 RS 49.650
May 2016 RS 42,685 RS 49,800
June 2016 RS 42,771 RS 49,900
July 2016 RS 45,085 RS 52,600
August 2016 RS 44,485 RS 52,516
September 2016 RS 45000 RS 52,500

Apart from marriage season there are some other factors that influence gold prices in Pakistan which are described as below:
US dollar and other factors
US dollar is the most important factor that influences the international gold price and gold prices in Pakistan. If the dollar weakens, investors around all over the world begin to sell the currency and buy gold for security. This causes increase in demand and as a result gold prices increase in the international market. On the other hand, when US Dollar strengthens, the demand for gold decreases in the international market.Among all these factors there are several other factors that affects gold prices i-e trading and speculation, increase in per capita income and government policies etc.
Gold prices in Pakistan fluctuates according to the metal prices of overseas markets. Gold prices in Pakistan increased rapidly in the month of September 2016 and reached up to Rs 52,500/tola. According to local jewelers More than 50% of jewelry is bought for weddings, and in the result of this the sales and prices of gold increased rapidly in wedding seasons.
Market analysts are expecting a decrease in the Gold prices in Pakistan ,mainly because upcoming month of muharram . In the month of muharram  demand of gold become comparatively less than other months, whereas the prices of gold is usually increased up on the celebrations of special occasions and on festive demands like marriage seasons etc. The low prices of gold attracts common man to buy gold instead of buying artificial jewelry.

About Emaad Qureshi