Factors affecting 1 tola gold price in Pakistan this week



Gold investment can be suitable for the Pakistan market as it has been a traditional investment option for many years, and it has shown consistent growth over time. However, like any other investment, there are risks involved, and there are number of factors that affect the 1 tola gold price in Pakistan. it’s important to do your research and understand the market conditions before making any investment decisions. Therefore, lets analyze the current market and factors affecting it this week.

Source : Daily times ( Gold prices at 07th April,2023)


Gold Market Performance  last week

The 1 tola gold price in Pakistan (24K) started the week at  Rs 207,800 and ended  the week  at Rs 212400.

Global demand and supply

Gold market has showed a decrease in the international market. The gold price in the international market started the week at  $1969 /ounce and ended the week at $ 2011/ounce. ANZ Research has raised its gold price predictioons due to weak U.S economy and weaker USD. In addition to that,banking criss is also cretaing demand for safe haven assets such as gold. The experts at ANZ Research believe that perounce price might touch $ 2075 by September 2024.

However, on the other hand, Trading Economics’ experts predicted that per ounce gold price will reach around $ 1900 mark till March 2024.

Pakistani experts believe that weak economy has started to push bullion prices high and it would also affect the 1 tola gold price in Pakistan.

USD to PKR exchange rate

Pakistani rupee has just touched the record low level USD mainly due to delay in the revival of the IMF loan package. The PKR started the week at Rs 283.80 and ended the week at Rs 284.

The forex experts believe  that the dollar’s value would increase due to miserable economic and political conditions  in Pakistan. However, it is a good news for gold investors as 1 tola gold price in Pakistan would increase with the increase in the political and economic uncertainty.


The inflation rates were 35.37 % in March as compared to last year. The experts at statistics bureau revealed that it was the highest inflation rate since the 1970’s. The consumer price index increased by 3.72 %  in March as compared to the last month. Details revealed that higher prices for cooking oil, food, and electricity pushed up the index.

Inflation can increase the demand for gold as it is often seen as a hedge against inflation. When inflation is high, the value of money declines and investors may turn to gold as a store of value. This is because gold is a tangible asset that is not tied to the performance of any particular currency or government. In this environment, Pakistani investors may turn to gold as a store of value, as it has historically retained its value over time and is not subject to the same fluctuations as currency. Resultantly, it will push the 1 tola gold price in Pakistan upwards.

Political and economic stability

The PML-N led federal government is trying hard to revive the IMF multibillion loan program. However, both sides yet to reach at any agreement to unlock the latest $1.1bn tranche. The government has to increase taxes and reduce energy subsidies to satisfy the IMF conditions. These measures also include austerity measures that are necessary to reduce the economic pain.

State of bank of Pakistan has recently raised its benchmark interest rates by 21 % that is the highest level in Asia. The decreasing forex reserve have started causing  severe shortages of imported medicines and health equipment.

On the other hand, political uncertainty is at its height after PML-N led government has decided file a reference against the chief justice of Supreme Court. It is a decision that will increase tussle among institutions and anarchy in the country .Furthermore, federal government is spending millions of rupees of tax payers’ money on propaganda campaigns that is just wastage of money.

PML-N led government has also passed a law to restrict the power of chief justice but that is still not signed by the President arif alvi. Experts believe that present political  and economic uncertainty will increase the1 tola gold price in Pakistan.

What to do?

It is important to research the present market settings, and factors that may impact the 1 tola gold price in Pakistan before investing in gold. Before making any investment decisions, it is important to do your own research, consult with a financial advisor, and understand your own risk tolerance and investment goals.

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