If you’re from Pakistan then you surely know that Karachi is the hub of business. What you might not know is that it is also the city with Pakistan’s largest gold and silver market called Sarafa Bazar. Karachi is not the deciding city when it comes to gold prices but it does have some amount of influence on prices. There could be many reasons for that but the main reasons are that it is the financial hub and also the deciding city for currency exchange rates in Pakistan.
Factors That Affect Gold Price In Karachi
The price of gold in Karachi is influenced by a variety of factors, below are some of the factors that can cause the fluctuation of gold prices.
Demand
One of the most deciding factors for Gold rate in Karachi is the demand. Gold is one of those valuable things that are in limited quantity and because of that its price is highly dependent on demand. Just like all other things, the price of gold increases when there is more demand, and decreases when there is less demand.
US Dollar
The US dollar is one of the main factors that affect the price of gold in Karachi. Gold is typically priced in USD, so the value of gold can be influenced by the strength or weakness of the US dollar. When the value of the dollar increases, it can make gold appear more expensive to buyers using other currencies, which can decrease demand for gold and lead to a decline in its price.
Economy
Finally, the economic conditions of Pakistan can also impact gold's price in Karachi. For example, if the economy is performing well and there is low inflation, the demand for gold may be lower, which could lead to a fall in the gold price. On the other hand, if the economy is struggling and there is high inflation, the demand for gold may be higher, which could lead to a rise in the gold price.