Why Gold Rates are Increasing: April-2024

Since the start of April-2024 Gold Rates are at record high in the Middle East specifically so we have decided to share the valuable insights with our readers. According to an article published by Forbes and other articles published by Hindustan Times, Bloomberg and Financial Times, there are multiple factors impacting the price of gold in the world and increasing tension in the Middle East, between Iran and Israel is reflecting on top among all. 

Factors other than aforementioned are the devaluation of the US dollar, Anticipated cut on interest rates in the United States, Investors sentiment and Increased demand of Gold around the globe. Here below you can see the details of how these factors are influencing the gold prices currently.

Geopolitical stability plays a pivotal role to strengthen the economies all over the world and has the same importance in every region. Increasing tensions between Iran and Israel have the potential to surround the whole region and affect the economies of the region significantly. These escalating tensions lay the impact on the prices of Oil because the Middle East is the largest oil producer in the world as well.

When Oil prices go upwards then the impact has a huge spread and all the industries get affected by this price hike and same goes with the prices of Precious metals like gold and silver. So the prime reason for the increase in gold and rates and its by-products like silver is not any single one.

Besides oil prices, Investors around the globe are also witnessing the impact of this destabilization and its effects on the economies of the region so they are trying to find a safe haven in gold and are investing in it to secure their money. Gold has widely proved itself a safe hedge against inflation and destabilized economies historically, so has retained the trust of investors and sustained its reputation as a profitable commodity.

Another reason for the increase in gold prices is the devaluation of the US dollar and expected cut on interest rates in the United States. Central Banks are investing heavily in gold not only in the United States but In China and other countries as well to avoid the impact of anticipated waves of inflation and destabilization in the world.

Due to increased investment in gold by individual investors and organizations like central banks and others, gold demand has increased in the international market so this is also an important reason behind the increase in gold rates.

Similarly in Pakistan Gold rates are increasing day by day bearing the impact of the international market and the prices of by-products of gold i.e. silver rates are also at record high in Pakistan. Today gold rate in Pakistan stands at Rs. 242,747 per tola and Silver Rate in Pakistan rests at Rs. 2,959

Gold Rates in Pakistan and Silver Rates in Pakistan are increasing day by day due to the escalating tension in the Middle East and these tensions are impacting the economies of the region as well. Another reason is the devaluation of the US dollar and the central banks huge investment in Gold due to anticipating cut on interest rates in the United States. Supply and demand factor is also affecting the gold rates in Pakistan because Pakistan relies mostly on imported gold to fulfill its market need and demand of gold in the international market due to prevailing conditions has been increased drastically so Pakistan is also bearing the cost.